Question
1. You are considering the following three mutually exclusive projects. The required rate of return for all three projects is 14%. Year A B C
1. You are considering the following three mutually exclusive projects. The required rate of return for all three projects is 14%.
| Year | A | B | C |
| 0 | $ (1,000) | $(5,000) | $(50,000) |
| 1 | $ 300 | $ 1,700 | $ 0 |
| 2 | $300 | $ 1,700 | $15,000 |
| 3 | $ 600 | $1,700 | $ 28,500 |
| 4 | $300 | $1,700 | $ 33,000 |
What is the IRR of the best project? % terms to 2 decimal places w/o % sign
PLEASE SHOW THE PROCESS*
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
7th Edition
0073530751, 9780073530758
