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Cash flows for an investment is given as follows: ΕΟΥ 0 1 2 3 4 5 6 CF -$150.00 $25.00 $25.00 $60.00 -$30.00 $60.00 $25.00 There is one internal rate of return (IRR) for this investment, which is 6.49%. a. Would the IRR increase or decrease if the end-of-year payment for year 6 increases to $50.00? Why? (5 points) b. If the MARR is 5%, would you invest in this project? (5 points) c. Would you try to increase or decrease IRR to make this investment more attractive? (5 points) Cash flows for an investment is given as follows: ΕΟΥ 0 1 2 3 4 5 6 CF -$150.00 $25.00 $25.00 $60.00 -$30.00 $60.00 $25.00 There is one internal rate of return (IRR) for this investment, which is 6.49%. a. Would the IRR increase or decrease if the end-of-year payment for year 6 increases to $50.00? Why? (5 points) b. If the MARR is 5%, would you invest in this project? (5 points) c. Would you try to increase or decrease IRR to make this investment more attractive? (5 points)

Answer rating: 100% (QA)

SOLUTION a If the endofyear payment for year 6 increases to 5000 the IRR of the investment would dec... View the full answer