Question
9.Consider the following projects, all of which have the same riskiness (all figures in $1,000s): Project A Project B Project C Project D Project E
9.Consider the following projects, all of which have the same riskiness (all figures in $1,000s):
Project A
Project B
Project C
Project D
Project E
Initial Investment
$2,000
$2,000
$2,000
$2,000
$2,000
End Yr 1
-$525
$200
$125
$600
$1,000
End Yr 2
-$325
$200
$150
$500
$500
End Yr 3
-$50
$350
$200
$450
$500
End Yr 4
$125
$350
$225
$400
$0
End Yr 5
$500
$500
$350
$350
$0
End Yr 6
$1,000
$500
$500
$300
$250
End Yr 7
$1,500
$700
Which one has the highest IRR?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
