Question
Four independent alternatives are under consideration. All projects last 8 years with no salvage. first cost $50000 $100000 $200000 $250000 cash flow per year $16122
Four independent alternatives are under consideration. All projects last 8 years with no salvage.
| first cost | $50000 | $100000 | $200000 | $250000 |
| cash flow per year | $16122 | $34786 | $43241 | $55440 |
1)If interest is 17%, rank these projects in order using NPV, IRR and payback. 2)The same 4 projects as in question 20. Now assume that these projects are mutually exclusive. Analyze the projects and make recommendations using IRR.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
