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What is Understanding MARR and Rate of Return about?
The document discusses various rate of return calculations used in engineering economy studies, including the Minimum Acceptable Rate of Return (MARR), Internal Rate of Return (IRR), and External Rate of Return (ERR). It provides examples of calculating the IRR of various investment projects and compares them to the MARR to determine which projects should be accepted. It also discusses common misconceptions around IRR calculations and introduces the concept of using the cost of capital to determine the MARR
- Author
- Srushti M
- Language
- EN