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Please solve and explain thanks. Not sure about the answer. Two mutually exclusive alternatives A and B are being considered Year 0 1 2 3
Please solve and explain thanks. Not sure about the answer.
Two mutually exclusive alternatives A and B are being considered Year 0 1 2 3 4 5 -$2500 $746 $746 $746 $746 $1664 $746 $1664 B. -$6000 $1664 $1664 S1664 The minimum attractive rate of return is 8% After calculation we can find that the internal rates of return for AIRRA = 15% for B.IRR, -12% and for B-A, IRRE-A= 9.8% Which of the following statements is correct? Select one Select A because IRR MARR B-A All other answers are wrong Select B because IRRE-A > MARR Select A because IRRA IRRB Select neither A nor B because IRRA MARR and IRRMARR
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