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Consider three investments with the following sequences of cash flows: n Project A Project B Project C 0 -$10,000 -$20,000 -$20,000 1 $15,000.00 $185,000.00 $10,000.00

Consider three investments with the following sequences of cash flows:

n

Project A

Project B

Project C

0

-$10,000

-$20,000

-$20,000

1

$15,000.00

$185,000.00

$10,000.00

2

$15,000.00

$15,000.00

$12,000.00

  1. Compute the IRR for each investment (optional to enhance solution)
    1. At MARR = 15%, if A, B and C are mutually exclusive projects, which project would you select on the basis of the rate of return on incremental investment?

select project A

Select Project B

Select project C

Non of the projects

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