Question
Regio Taxi evaluates the purchase of a car to provide its services. Three scenarios are proposed with the following results: In a normal scenario, with
Regio Taxi evaluates the purchase of a car to provide its services. Three scenarios are proposed with the following results: In a normal scenario, with 40% probability, IRR=14%. In the optimistic scenario with a 35% probability, the IRR=18%. And in a last scenario the IRR = 10%. If the MARR is 13%, the decision would be: Answer Choice Group Buy the taxi since the IRR is most likely 14% Buy the taxi because the expected IRR is 14.4% Buy the taxi and choose the optimistic scenario since it has the highest IRR of 18% Not buying the taxi because the probability that the IRR exceeds the MARR is 75%
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