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Consider the investment projects given in the table below. Assume that MARR=13% in the following questions. Net Cash Flow n Project 1 Project 2 Project
Consider the investment projects given in the table below. Assume that MARR=13% in the following questions. | ||||
Net Cash Flow | ||||
n | Project 1 | Project 2 | Project 3 | |
0 | ($9,000) | ($6,500) | ($2,500) | |
1 | $10,500 | $13,000 | $10,000 | |
2 | $10,500 | $28,000 | ($10,000) | |
3 | - | ($43,000) | - | |
a) compute i* for each investment, identify all of them | ||||
b) compute IRR(true) for the project | ||||
c) compute the MIRR at MARR=13% | ||||
d) determine the acceptability of each investment |
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