Question: Consider the two mutually exclusive investment projects given in the table below for which MARR=12%. On the basis of the IRR criterion, which project would
Consider the two mutually exclusive investment projects given in the table below for which MARR=12%.
On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely?
| Net Cash Flow | ||||
| n | Project A | Project B | ||
| 0 | $4,000 | $11,000 | ||
| 1 | 1,500 | 9,500 | ||
| 2 | 2,000 | 9,500 | ||
| 3 | 2,000 |
| ||
| IRR | 16.88% | 45.66% | ||
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