Consider the Iwo mutually exclusive investment alternatives given in Table P7.41. (a) Which project would be selected
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Consider the Iwo mutually exclusive investment alternatives given in Table P7.41.
(a) Which project would be selected based on the rate of return decision criterion? (Assume that MARR = 10%.)
(b) Determine the MIRR on the incremental investment. Which project would be chosen at MARR = 10%?
Transcribed Image Text:
TABLE P7.41 11 0 1 2 3 IRR نیا Net Cash Flow Project Al -$12,000 7,500 7,500 7,500 39.45% Project A2 -$15,000 8,000 14,000 5,000 38.27%
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