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Consider the following two investment opportunities: MARR =10% Year 0 1 2 3 4 5 6 7 8 Option 1 -$800 $215 $215 $215 $215
Consider the following two investment opportunities: MARR =10%
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Option 1 | -$800 | $215 | $215 | $215 | $215 | $215 | $215 | $215 | $215 |
Option 2 | -$800 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | $750 |
- Calculate the Internal Rate of Return (IRR) for Option 1 and 2
A. IRR15%; | IRR210%; |
B. IRR110%; | IRR22%; |
C. IRR121%; | IRR22%; |
D. IRR130%; | IRR210%; |
E. IRR140%; | IRR210%; |
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