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ABC company is evaluating an engineering project which will last for 5 years. For an initial...

ABC company is evaluating an engineering project which will last for 5 years. For an initial investment of $95 million, annual net revenues are estimated to be $20 million in Year 1 to 3 and $39 million in Year 4 and 5. Assume the MARR is 6% per year and a salvage value of 1 million at the end of this project.

Is the IRR of this project greater than, equal to or less than the MARR? How do you know?

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jeff jeffy answered 1 year ago
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