Acompany is setting up a project to buld housingUnits in which the investment volume is estimatedat ane million dollars to build (100 houses), the priceof the house is (20,000) dollars, to be paid in equalinstalliments for a periad of (4 years), the annualCosts are estimated at (50) thousand dollars.Calculate the Simple rate of returm, the payoackperiod and the internal rate of retum for theproject, bearing in mind that the lowest discounthiahest is (12'%). Will the projectbe accepted or rejected.rate is (8b) and the

Introduction Initial investment = 20,000 ×100 dollar =2,000,0004 = 500,000 Cost = 50,000 annual net…

A company is setting up a project to buld having Units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the halse is (20,000) dollars, to be paid in equal installments for a period of (4 years), the amnual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount wate is (8%) and the hiahest is (12%). Will the project be accepted or rejected?

A company is setting up a project to buld having Units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the halse is (20,000) dollars, to be paid in equal installments for a period of (4 years), the amnual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount wate is (8%) and the hiahest is (12%). Will the project be accepted or rejected?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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