What is the best alternative to invest money in an independe

What is the best alternative to invest money in an independent engineering project?

a) Invest in an alternative project that can recoup the investment

b) Putting money into a bank to earn the bank interest rate

c) Not invest into other projects

d) Invest into some other engineering projects that earn return equal to or higher than MARR

e) Invest in an alternative project that can earn the same interest rate as an independent project

Solution

d) Investing in some other engineering projects that earn a return equal to or higher than MARR is the best alternative to invest because it will give the same return and there is also a possibility that it will get a higher return.

If it invests in the bank it will earn only bank rate but MARR is either equal to or greater than bank rate so option d is the best choice.

if you think of choice e that is investing in an alternative project that can earn the same interest rate as the independent project is not the best option because both are giving the same return. it will be best if you have given risk associated with these two projects, so we have assumed the same risk so it is same as the first project.

option d.