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A small company has $20000 in surplus capital that it wishes to invest in new revenue producing projects. Three independent sets if mutually exclusive projects

A small company has $20000 in surplus capital that it wishes to invest in new revenue producing projects. Three independent sets if mutually exclusive projects have been developed. The useful life of each is five years and all market values are zero. You have been asked to perform an IRR analysis to select the best combination of projects. If the MARR is 12% per year which combination of projects would you recommend?

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Net Annual Benefits x Mutually Exclusive Mutually Exclusive Mutually Exclusive Project Capital Investment (S) A1 -5000 - 7000 B -12000 B2 -8000 ci - 14000 5 - 18000 1500 1800 2000 4000 1000 4500

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