Question: Consider the three mutually exclusive projects that follow. The firm's MARR is 10% per year. a. Calculate each project's PW. b. Determine the IRR of

Consider the three mutually exclusive projects that follow. The firm's MARR is 10% per year.

a. Calculate each project's PW.
b. Determine the IRR of each project.
c. Which project would you recommend?
d. Why might one project have the highest PW while a different project has the largest IRR?

EOY Project Project 2 Project 3 $10,000 $8,500 $11,000 $5,400 1-3 $5,125 $ $4.450

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a PW 1 10 2745 PW 2 10 2566 PW 3 10 2429 b IRR 1 25 ... View full answer

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