Question: Consider the two mutually exclusive investment projects given in Table P7.57. TABLE P7.57 (a) To use the IRR criterion, what assumption must be made in

Consider the two mutually exclusive investment projects given in Table P7.57.
TABLE P7.57

(a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives?
(b) With the assumption made in part (a), determine the range of MARRs which will indicate that project A1 should be selected.

n 0 Net Cash Flow Project Al -$10,000 5,000 Project A2 -$15,000 20,000 2 5.000 3 5,000

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