Table Q3 shows the expected cash flows for two projects, A and B. Assume the minimum...

 

Transcribed Image Text:

Table Q3 shows the expected cash flows for two projects, A and B. Assume the minimum attracie rate of return (MARR) is 8%. Use the incremental IRR method to evaluate which project is a better investment. (20 marks) Projects Project A Project B Cash flows (RM) Costs Income Table Q3: Cash flows for Project A and B Year Costs Income 0 50,000 20,000 2 9,000 3 10,000 15,000 12,000 35,000 10,500 11,000 14,000 15,500 15,000 16,500 [20 MARKS] Table Q3 shows the expected cash flows for two projects, A and B. Assume the minimum attracie rate of return (MARR) is 8%. Use the incremental IRR method to evaluate which project is a better investment. (20 marks) Projects Project A Project B Cash flows (RM) Costs Income Table Q3: Cash flows for Project A and B Year Costs Income 0 50,000 20,000 2 9,000 3 10,000 15,000 12,000 35,000 10,500 11,000 14,000 15,500 15,000 16,500 [20 MARKS]

Answer rating: 100% (QA)

formula shown below to calculate the IRR A B C D E 1 1 A B C D 2 2 A B 3 3 YEAR CASH FLOW CAS... View the full answer