Question

6-19. Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 18% per year. Which site should be chosen based on the IRR criterion

Answer 1

Answer:

Site B should be chosen based on the IRR criterion

Explanation:

Please check the attached image for the complete question

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

When comparing projects, the project with the highest IRR should be chosen.

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