1. Problem Statement
Continuing from the previous Blog 6. Determining The Contractor’s IRR in PSC, now contractor must determine whether it should accept the the project/contract or not. Does contractor have to accept the project/contract? Is it economical or uneconomical to contractor?
This time I continue to discuss further using topic from my previous posting on week 3 now I want to talk about laundry service further in this posting. Evaluating a single project using tools as discussed in in Engineering Economy Engineering Book, chapter 5, page 178-211. Introducing concept of Minimum Attractive Rate of Return (MARR) and Inernal Rate of Return (IRR) to see whether the business investment project should go or not.
Filed under Asyhad, Week 04