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Problem

You must choose between three investment opportunities, as shown below which all operate over an eight year contract. Your investment company needs a MARR of 6%.


Opportunity A

Opportunity B

Opportunity C

Amount of Investment

$50,300

$125,500

$43,600

Yearly Income

$6,900

$20,800

$7,650

IRR




One of the above individual, IRRs will not meet the MARR. What is the incremental IRR between the two remaining opportunities?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92759392

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