Question
3. There are 3 mutually exclusive investments: A, B, and C, which of the 3 should be chosen if you can only choose one? Suppose
3. There are 3 mutually exclusive investments: A, B, and C, which of the 3 should be chosen if you can only choose one? Suppose you are restricted only to investing a total of 11,000, what would you do? Assume a cutoff of 10%.
| Investment | 0 | 1 | 2 | 3 | IRR (%) |
| A | (1,000) | 505 | 505 | 505 | 24 |
| B | (10,000) | 2,000 | 2,000 | 12,000 | 20 |
| C | (11,000) | 5,304 | 5,304 | 5,304 | 21 |
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
