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A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate (a) the internal rate of return (Hint: 20%<=i*<=22%) and (b) the composite rate of return (Hint: 18%<=i’<=20%), using a reinvestment rate of 20% per year. Should the company continue to make clutch disks? Year Cash flow,

$ 0 6000

1 -10000

2 12000

3 -10400

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92323721

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