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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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