Consider two investments with the following sequences of cash flows: (a) Compute the IRR for each investment.

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Consider two investments with the following sequences of cash flows:

Net Cash Flow Project B -$100,000 Project A п -$100,000 $10,500 $70,000 $60,000 $50,000 $80,000 $20,500 3

(a) Compute the IRR for each investment.
(b) At MARR = 10%, determine the acceptability of each project.
(c) If A and B are mutually exclusive projects, which project would you select on the basis of the rate of return on incremental investment?

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Fundamentals of Engineering Economics

ISBN: 978-0132775427

3rd edition

Authors: Chan S. Park

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Question Posted: Nov 12, 2018 01:01 PM

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Consider two investments with the following sequences of cash flows: (a) Compute the IRR for each investment.

Question:

Net Cash Flow Project B -$100,000 Project A п -$100,000 $10,500 $70,000 $60,000 $50,000 $80,000 $20,500 3

Step by Step Answer:

a Project A IRR 1833 Project B IRR 2377 b Both pr...View the full answer

Fundamentals of Engineering Economics

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