Consider the following two investment projects and an MARR of 9%. Remember that Excel may not be used for any part of this question.

(a) Classify each investment as either a simple or non-simple.

(b) Find all possible i* values for each project

(c) Use the RIC method to find the true IRR for Project A

(d) What can be said about the true IRR for Project B, based upon the results of parts (a) and (b) [do not perform any calculations to answer this question]

(e) Consider each individual project and determine if these projects (when considered individually) are good or bad investments. Use an MIRR approach.

Net Cash Flows 1 2 Project A Project B -$4,760 -$9,520 14,750 -10,475 7,425 4,500