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a question in ASSETS AND LIABILITIES....show all methods used thanks 2. Suppose the company have three exclusive mutually investments as given in the table below.
a question in ASSETS AND LIABILITIES....show all methods used thanks
2. Suppose the company have three exclusive mutually investments as given in the table below. Investment A 1 000 340 Investment B investiment C 600 400 10% cost 60 80 Initial investment required (N$) Annual operating cash inflow (N$) Terminal cash inflow at the end of life- time (N$) Lifetime (years) 500 300 200 capital 20. 20 20 (a) Calculate the IRR and PI for-cach investment. (6) (1) If a company cost of capital is 10% per year. Base on IRRs, which investment is not acceptable, motivate your answer. [2]Step by Step Solution
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