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9. Consider the cash flows for the investment projects given in the table below. Assume that the MARR = 13% 5 Click the icon to
9. Consider the cash flows for the investment projects given in the table below. Assume that the MARR = 13% 5 Click the icon to view the cash flows for the investment projects (a) Suppose A, B, and C are mutually exclusive projects. Compute the IRR on incremental investment for each pair. (Round to one decimal place.) Incremental Investment Incremental Rate of Return C- B B-A Which project would be selected on the basis of the IRR criterion? Choose the correct answer below O A. Project A O B. Project B O C. Project C (b) What is the borrowing rate of return (BRR) for project D? The borrowing rate of return (BRR) for project D is %. (Round to one decimal place.) (c) Would you accept project D at MARR-16%? Choose the correct answer below. O Yes No (d) Assume that projects C and E are mutually exclusive. Compute the IRR on incremental investment The IRR on incremental investment is Using the IRR criterion, which project would you select? Assume that the MARR = 13%. Choose the correct answer below O Project E O Project C %. (Round to one decimal place.) 5: More Info Net Cash Flow Project C $2,300 1,100 1,100 1,100 1,100 Project A Project B $1,300 1,100 700 400 200 Project D $1,300 -400 -400 400 -400 Project E $1,600 600 600 1,400 600 $1,300 800 700 700 400 2 4
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