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AR Chan Limited has three possible projects but only one can be undertaken because of limited finance for investment. Some details have been lost and
AR Chan Limited has three possible projects but only one can be undertaken because of limited finance for investment. Some details have been lost and the person responsible is ill, however, the company has the following information: Required (a) Calculate the missing values of A,B,C,D,E and F. (b) Calculate each project's Internal Rate of Return (IRR), using 15% as the other rate, if needed. (c) State which project should be undertaken to maximise shareholder wealth and justify your choice with supporting ideas. (d) Explain ONE disadvantage for each of Payback Period, Net Present Value and Internal Rate of Return as methods of investment appraisal
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