Consider an investment project with the cash flows given in Table P7.15. Table P7.15 n Net Cash

Question:

Consider an investment project with the cash flows given in Table P7.15.
Table P7.15
n Net Cash Flow
0................................ -$220,000
l................................ 94,000
2................................ 144.000
3............................... 72.000
(a) Find the IRR for this investment.
(b) Plot the present worth of the cash flow as a function of i.
(c) On the basis of the IRR criterion, should the project be accepted at = 15%?
MARR
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...