3-IRR CO C1 C2 C3 C4 -2450 1700 0900 940 3.a: what is the IRR of...

 

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3-IRR CO C1 C2 C3 C4 -2450 1700 0900 940 3.a: what is the IRR of the project above? (1 Point) 3.b: Do you accept the project based on the IRR rule if the cost of capital is 15%? (1 Point) 3.c: Do you accept the project based on the IRR rule if the cost of capital is 20%? (1 Point) 4- Calculate Profitability Index for each projects below. If you have only $24mln you can use to invest in projects, which projects would you choose based on the Profitability Index criteria? What is the maximum NPV that you can earn? (3 Points) Project millions) A B с Investment required (in D E NPV 10 28 12 40 6 25 8 22 4 19 3-IRR CO C1 C2 C3 C4 -2450 1700 0900 940 3.a: what is the IRR of the project above? (1 Point) 3.b: Do you accept the project based on the IRR rule if the cost of capital is 15%? (1 Point) 3.c: Do you accept the project based on the IRR rule if the cost of capital is 20%? (1 Point) 4- Calculate Profitability Index for each projects below. If you have only $24mln you can use to invest in projects, which projects would you choose based on the Profitability Index criteria? What is the maximum NPV that you can earn? (3 Points) Project millions) A B с Investment required (in D E NPV 10 28 12 40 6 25 8 22 4 19

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3 To calculate the IRR of the project we need to solve for the discount rate that equates the present value of cash inflows with the present value of ... View the full answer