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The following information is given about two mutually exclusive projects. Accordingly, what is the required MARR ratio to compare projects and choose Project 2? IRR:
The following information is given about two mutually exclusive projects. Accordingly, what is the required MARR ratio to compare projects and choose Project 2? IRR: internal rate of return MARR: minimum (required) rate of return (market rate)
year | Net cash flow | Net cash flow |
n | Project 1 | Project 2 |
0 | - 1.200 | - 2.000 |
1 | 600 | 1.500 |
2 | 1.000 | 1.000 |
IRR | 19,65% | 17,54% |
a) MARR 12.50% b) 17.54% MARR 19.65% c) 19.65%
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