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Consider the investment projects given in Table. Assume that MARR = 12% in the following questions.

(a) Compute i* for each investment. If the problem has more than one i* identify all of them

(b) Compute IRR (true) for each project.

(c) Compute the MIRR at MARR = 12%.

(d) Determine the acceptability of each investment.

Table

 

Net Cash Flow

n

Project 1

Project 2

Project 3

0

-$1.000

-$1,000

-$1,000

1

2,500

1,960

1,400

2

840

950

-200

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92766824

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