Question: There are two projects A and B with the below cash flows. MARR is 10%. a) Is it profitable to invest your money in Project
There are two projects A and B with the below cash flows. MARR is 10%. a) Is it profitable to invest your money in Project A at 10% MARR? Why? (3 pts) b) Is it profitable to invest your money in Project B at 10% MARR? Why? (3 pts) c) Assuming that you need to choose only one project from projects A and B, find the incremental cash flow. Is the incremental cash flow is a pure or mixed investment? (6 pts) d) Depending on your answer in part (c) either find ROR or RIC for the incremental cash flow. (6pts) e) Which project would you choose? (2 pts) There are two projects A and B with the below cash flows. MARR is 10%. a) Is it profitable to invest your money in Project A at 10% MARR? Why? (3 pts) b) Is it profitable to invest your money in Project B at 10% MARR? Why? (3 pts) c) Assuming that you need to choose only one project from projects A and B, find the incremental cash flow. Is the incremental cash flow is a pure or mixed investment? (6 pts) d) Depending on your answer in part (c) either find ROR or RIC for the incremental cash flow. (6pts) e) Which project would you choose? (2 pts)
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