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Two investments have the following pattern of expected returns: BTCF BTCF Year 1 $6,500 Year 1 $3,500 Year 2 $11,500 Year 2 $5,500 Investment A

Two investments have the following pattern of expected returns: BTCF BTCF Year 1 $6,500 Year 1 $3,500 Year 2 $11,500 Year 2 $5,500 Investment A Year 3 $13,500 Investment B Year 3 $2,500 Year 4 $16,500 Year 4 $6,500 Year 4 (Sale) $135,000 Year 4 (Sale) $195,000 Investment A requires an outlay of $125,000 and Investment B requires an outlay of $135,000. Required: a. What is the BTIRR on each investment? b. If the BTIRR were partitioned based on BTCF and BTCFs what proportions of the BTIRR would be represented by each? c. Which investment would be preferable?
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Two investments have the following pattern of expected returns: Investment A requires an outlay of $125,000 and Investment B requires an outiay of $135,000. Required: a. What is the BTIRR on each investment? b. If the BTIRR were partitioned based on BTCF, and BTCF, what proportions of the BTIRR would be represented by each? c. Which investment would be preferable

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