Question: IRR rule (S5.3) Plot the NPVs for the following projects for discount rates from 0% to 30%: Which one of these projects has no IRR?
IRR rule (S5.3) Plot the NPVs for the following projects for discount rates from 0% to 30%:
Which one of these projects has no IRR? One of the projects has two IRRs. Which is this project and what are the IRRs? What are the IRRs of the other two projects? Suppose projects A and C are mutually exclusive. If the cost of capital is 6%, which one would you accept? Page 143 If the cost of capital is very high, would you accept project C? Why or why not?
| Project | C0 | C1 | C2 |
| A | 100 | 20 | 100 |
| B | 1,000 | 2260 | 1,270 |
| C | 100 | 50 | 80 |
| D | 1,080 | 2510 | 1,500 |
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