economics and management
Consider the following set of independent investment projects. Assume MARR = 10%.
Project n : 0 1 2 3 4 5 6 - 20
1 -100 50 50 50 50 -750 100
2 -100 30 30 30 10 10
3 -16 92 -170 100
(a) Compute the annual value of each project and determine the acceptability of each.
Which project would you pick if these are mutually exclusive?
(b) Compute the External Rate of Return (IRR, MIRR) for each project and deter-
mine the acceptability of each.
(c) Recall the criteria for having a unique IRR value for a project. Apply these
criteria to the above projects and identify which ones are guaranteed to have a
unique IRR.
(d) For each project, write down an equation that will give the projects IRR as
its solution. Compute the IRR for each project and determine which ones are
economically feasible (you can use a spreadsheet).
(e) Find the breakeven periods for the three projects.
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why is for the calculation of NPV various methods are used? like sometimes it is like...
why is for the calculation of NPV various methods are used? like
sometimes it is like the NPV of a project is determined by dividing
the given cash flows for the year by given WACC whereas on the
contrary, NPV is calculated by multiplying the given cash flows
with present value factors? this sounds a bit crazy as well but i
am confused. so can you please explain this?
aptal budgeting and cash flow estimation Internal Rate of Return (IRR)...
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why is for the calculation of NPV various methods are used? like
sometimes it is like the NPV of a project is determined by dividing
the given cash flows for the year by given WACC whereas on the
contrary, NPV is calculated by multiplying the given cash flows
with present value factors? this sounds a bit crazy as well but i
am confused. so can you please explain this?
aptal budgeting and cash flow estimation Internal Rate of Return (IRR)...
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