Question: The following information is given about two mutually exclusive projects. Accordingly, what is the required MARR ratio to compare projects and choose Project 2? IRR:

The following information is given about two mutually exclusive projects. Accordingly, what is the required MARR ratio to compare projects and choose Project 2? IRR: internal rate of return MARR: minimum (required) rate of return (market rate)

year	Net cash flow	Net cash flow
n	Project 1	Project 2
0	- 1.200	- 2.000
1	600	1.500
2	1.000	1.000
IRR	19,65%	17,54%

a) MARR 12.50% b) 17.54% MARR 19.65% c) 19.65%

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