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Consider the following cash flow diagram related to project of company . The company in question can easily invest money at the rate of 10%
Consider the following cash flow diagram related to project of company . The company in question can easily invest money at the rate of 10% (external investing rate) and borrow money at the rate of 5% (external borrowing rate).
a) Determine the maximum number of internal rate of returns (IRR) (5 points) b) Use IRR ERR to decide if project aby is worthwhile for company X under MARR = 6%. (25 points) (You must use gradient and annuity factors!) 500 300 100 0 3 8 300 500 a) Determine the maximum number of internal rate of returns (IRR) (5 points) b) Use IRR ERR to decide if project aby is worthwhile for company X under MARR = 6%. (25 points) (You must use gradient and annuity factors!) 500 300 100 0 3 8 300 500Step by Step Solution
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