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Consider two investments with the following sequences of cash flows:
n Project A Project B
0 -$120,000 $-100,000
1 $20,000 $15,000
2 $25,000 $15,000
3 $120,000 $110,000

a. Compute the IRR of each investment
b. At MARR=15% determine the acceptability of each project
c. If A and B are mutually exclusive projects, which project would you select based on the rate of return of incremental investment?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9488807

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