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[Q5] (35 points) Consider the following investment projects: Project Cash Flow n A B 0 - $ 100 - $ 100 -$5 1 100 30
[Q5] (35 points) Consider the following investment projects: Project Cash Flow n A B 0 - $ 100 - $ 100 -$5 1 100 30 10 2 24 70 30 3 70 -40 a) Classify each project as either simple or non-simple investment. (5pts) b) Use the quadratic equation to compute i* for A. (5pts) c) Predict the number of possible real i* 's. Identify all projects having a unique i*.(5pts) d) If the IRRs for projects B and C are: IRRR = 28.59% and IRRC = 15.57%, determine whether they are pure or mixed investment. (10pts) e) Evaluate each project's acceptability at MARR 12% and if they are mutually exclusive projects, which project should be selected? (10pts)
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