Question
A project manager is using the internal rate of return method to make the final decision on which project (A, B, C, and D) to
A project manager is using the internal rate of return method to make the final decision on which project (A, B, C, and D) to undertake. Select correct answers only.
Year | net flow of A | net flow of B | net flow of C | net flow of D |
0 | -$108,000 | -$88,000 | -$63,000 | -$65,050 |
1 | $42,000 | $25,000 | $13,000 | $20,000 |
2 | $35,000 | $21,000 | $17,500 | $16,000 |
3 | $30,000 | $22,000 | $17,000 | $16,000 |
4 | $19,000 | $24,000 | $17,000 | $16,000 |
5 | $6,000 | $21,000 | $17,500 | $16,000 |
Group of answer choices
the lowest IRR calculated for these projects is 9.11%
if your current return is 9.98% will you undertake any of these project? Yes
the highest IRR calculated for these projects is 9.52%
Project C's IRR is 9.11%
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