Consider the following projects cash flows: n Cash Flow 0......-$3,000 1..........$800 2..........$900 3..............X Assume that the projects
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Consider the following project’s cash flows:
n Cash Flow
0………………......-$3,000
1………………..........$800
2………………..........$900
3………………..............X
Assume that the project’s IRR is 10%.
(a) Find the value of X.
(b) Is this project acceptable at MARR = 8%?
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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