MARRs are:
• Before-taxes with inflation = 10%
• Before-taxes without inflation (inflation-free) = 8%
• After-taxes with inflation = 5%
• After-taxes without inflation (inflation free) = 3%
1. The MARR required for the calculation of the project’s Net Present Worth (NPW) in after-tax current (actual) dollars is
a) 10%; b) 8%; c) 5%; d) 3%.
2. The MARR required for the calculation of the project’s Annual Equivalent Worth (AEW) in before-tax constant dollars is
a) 10%; b) 8%; c) 5%; d) 3%.
3. If you were the owner of this project, the MARR used to determine the project’s impact on the after-tax purchasing power of your investment would be
a) 10%; b) 8%; c) 5%; d) 3%.