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 and Project Klentun. The MARR is 12%.

Year	0	1	2	3	4	5	6
Trun	-28000	8600	7000	9800	8300	12300	9500
Beden	-13000	3600	2000	4800	3300	12300	2400
Klentun	-10000	2000	3000	3000	3000	1500	1000

The IRR of Trun is 22.460585772991%, while Beden is23.923694193363%.

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 : 0.3038Q.2.b. What is the Incremental IRR for the projects compared? Show calculations using trial & error method. (14 marks). Format : 0.8799Q.2.c. Which project should be chosen? Write down your reason in the workings to be submitted. (2 marks). Format : xxxx

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