Below are cash flows for 3 projects, Project Trun, Project Beden and Project Klentun. The MARR is
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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 | -33000 | 8600 | 7000 | 9700 | 8300 | 12300 | 9500 |
Beden | -11000 | 3600 | 2000 | 4800 | 3300 | 12300 | 2400 |
Klentun | -10000 | 2000 | 3000 | 3000 | 3000 | 1500 | 1000 |
The IRR of Trun is 16.183931529522%, while Beden is30.37561019361%.
Show your detailed calculations in the workings to be submitted.
a. Calculate the IRR of Klenten. Use trial & error method.
b. What is the Incremental IRR for the projects compared? Show calculations using trial & error method.
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