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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 |
- Compute the IRR for each investment (optional to enhance solution)
-
- 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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