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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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