Consider the investment projects given in Table P7.23. Table P7.23 Assume that MARK = 12% in the
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Table P7.23
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Assume that MARK = 12% in the following questions.
(a) Compute i* for projects A and B. If the project has more than one i*, identify all of them.
(b) Classify each project as either a pure or a mixed investment.
(c) Compute the IRR for each investment.
(d) Determine the acceptability of each project.
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a Project A i 1 10 i 2 100 Project B i 1 35034 i 2 8...View the full answer
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