Question: Q2.Below are cash flows for 3 projects, Project Trun, Project Beden and Project Klentun. The MARR is 12%. Year 0 1 2 3 4 5

Q2.Below are cash flows for 3 projects, Project Trun, Project Beden

Q2.Below are cash flows for 3 projects, Project Trun, Project Beden and Project Klentun. The MARR is 12%. Year 0 1 2 3 4 5 6 Trun -32000 86007000 9600 830012300 9500 Beden -10000 3600 2000 4800 3300 12300 2400 Klentun -10000 2000 3000 3000 3000 1500 1000 The IRR of Trun is 17.228141129017%, while Beden is 34.341693076491%. Show your detailed calculations in the workings to be submitted. Q.2.a. Calculate the IRR of Klenten. Use trial & error method. (9 marks). Format : 0.80660.2.b. What is the Incremental IRR for the projects compared? Show calculations using trial & error method. (14 marks). Format : 0.0288Q.2.c. Which project should be chosen? Write down your reason in the workings to be submitted. (2 marks). Format : XXXXX

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