recommend to SLB to increase capacity without any additional equip 8. Greg Kopp, Acting Dean of Engineering, is considering competing proposals to establish joint programs with universities in Australia and Mexico. Students enrolled in each program would pay an additional fee to participate in these programs. Australia $105,000 $60,000 Mexico $185,000 $71,000 Investment Net Benefit 3 years Project Life 2 years With a hurdle rate (MARR) of 10%, calculate the net present value and external rate of return of the two investments. As Greg Kopp, which option would you recommend the Faculty of Engineering pursue? TOTAL

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.3CE
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recommend to SLB to increase capacity without any additional equipment or labour!
8. Greg Kopp, Acting Dean of Engineering, is considering competing proposals to establish joint
programs with universities in Australia and Mexico. Students enrolled in each program would pay an
additional fee to participate in these programs.
Australia
$105,000
$60,000
Mexico
$185,000
$71,000
Investment
Net Benefit
3 years
Project Life
2 years
With a hurdle rate (MARR) of 10%, calculate the net present value and external rate of return of the two
investments. As Greg Kopp, which option would you recommend the Faculty of Engineering pursue?
TOTAL
Transcribed Image Text:recommend to SLB to increase capacity without any additional equipment or labour! 8. Greg Kopp, Acting Dean of Engineering, is considering competing proposals to establish joint programs with universities in Australia and Mexico. Students enrolled in each program would pay an additional fee to participate in these programs. Australia $105,000 $60,000 Mexico $185,000 $71,000 Investment Net Benefit 3 years Project Life 2 years With a hurdle rate (MARR) of 10%, calculate the net present value and external rate of return of the two investments. As Greg Kopp, which option would you recommend the Faculty of Engineering pursue? TOTAL
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