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You are the financial manager for a restaurant and you are analyzing the following two mutually exclusive deck projects. You have developed the following information.
You are the financial manager for a restaurant and you are analyzing the following two mutually exclusive deck projects. You have developed the following information. The required return for the project is 8%. Basic deck Covered deck 0 -600,000 2,000,000 1 200,000 800,000 2 250,000 825.000 3 300,000 800,000 Blank #1: What is the IRR for the Basic deck project? (5 points) Blank #2: What is the IRR for the Covered deck project? (5 points) Blank #3: What is the cross-over IRR for these two projects? (5 points) Blank #4: Which deck should you choose based on your answers above? (5 points)
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