5. QuizCo would like to use the IRR method to choose between projects A and B...
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5. QuizCo would like to use the IRR method to choose between projects A and B below. QuizCo's MARR is 10%. Each project lasts 5 years. (a) Calculate the IRR for each project. Check with Excel using the IRR function, the rate function, and Goal Seek. Include the Excel output in your Assignment. (5 marks) (b) Calculate the incremental IRR. (4 marks) (c) Which project should be selected based on incremental IRR? (2 marks) Project Annual Savings First Cost 12,000 13,000 A 3450 B 3700 5. QuizCo would like to use the IRR method to choose between projects A and B below. QuizCo's MARR is 10%. Each project lasts 5 years. (a) Calculate the IRR for each project. Check with Excel using the IRR function, the rate function, and Goal Seek. Include the Excel output in your Assignment. (5 marks) (b) Calculate the incremental IRR. (4 marks) (c) Which project should be selected based on incremental IRR? (2 marks) Project Annual Savings First Cost 12,000 13,000 A 3450 B 3700
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Related Book For
Project Management in Practice
ISBN: 978-0470533017
4th edition
Authors: Samuel J. Mantel Jr., Jack R. Meredith, Sco
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