Compute the internal rate of return (IRR) and the modified internal rate of return (MIRR) for each of the following capital budgeting projects Assume that the firms required rate of return is 14 percent Which project(s) should be purchased if they are independent Which project should be purchased i...

Year Project G Project J Project K 0 180000 240000 200000 1 80100 0 100000 2 80100 0 205000 3 80100 ...

Compute the internal rate of return (IRR) and the modified internal rate of return (MIRR) for each

Question:

Compute the (IRR) and the modified (MIRR) for each of the following projects. Assume that the firm€™s required rate of return is 14 percent.

Project K $(200,000) (100,000) 205,000 Year Project J Project G $(180,000) $(240,000) 80,100 80,100 80,100 375,000 205,0

Which project(s) should be purchased if they are independent? Which project should be purchased if they are mutually exclusive?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...