The interest rate used in computing the project balances

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Consider the following project balances for a typical investment project with the service life of four years:

n                      An($)                          Project Balance ($)

0                      -1000                          -1000

1                      (           )                       -1300

2                      (           )                       -600

3                      2160                           1500

4                      (           )                       4650

Determine the interest rate used in computing the project balances.

Construct the original cash flows of the project.

Would this project be acceptable at a MARR of 12%, compounded annually? Give reason(s)

Reference no: EM13815766

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