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Consider the following investments projects. Year (n) Project 1 Project 2 0 -1,200 -2,000 1 600 1,500 2 1,000 1,000 IRR 19.65% 17.54% Determine the

Consider the following investments projects.

Year (n) Project 1 Project 2
0 -1,200 -2,000
1 600 1,500
2 1,000 1,000
IRR 19.65% 17.54%

Determine the range of M A R R for which Project 2 would be preferred over Project 1.

a) M A R R

b) 13%

c)16%

d) Not enough information to determine

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