N | Project A1 | Project A2 | Difference |
0 | -12000 | -14000 | -2000 |
1 | 5000 | 6200 | 1200 |
2 | 5000 | 6200 | 1200 |
3 | 5000 | 6200 | 1200 |
IRR | 12.0% | 15.7% | 36.3% |
The IRR on incremental investment = 36.3%
Formula:-
N | Project A1 | Project A2 | Difference |
0 | -12000 | -14000 | -2000 |
1 | 5000 | 6200 | 1200 |
2 | 5000 | 6200 | 1200 |
3 | 5000 | 6200 | 1200 |
IRR | =IRR(B2:B5) | =IRR(C2:C5) | =IRR(D2:D5) |
Consider the two mutually exclusive alternatives given in the table below. W NO Net Cash Flow Project A1 Project...
Consider the two mutually exclusive investment projects given in the table below. E Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. The required service period is infinity B. Project A1 can be repeated at the same cost in the future. C. Project A2 can be repeated at the same...
Consider the two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. B. The required service period is 3 years. OC. Project A2 can be repeated at the same...
Consider the two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. The required service period is 3 years. B. The required service period is infinity. C. Project A2 can be repeated at the same cost in the future. D. Project...
Consider the two mutually exclusive investment projects given in the table below. E Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. O B. The required service period is infinity. C. The required service period is 3 years....
Consider the two mutually exclusive investment projects given in the table below for which MARR = 16%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely? Click the icon to view the cash flows for the investment projects. The rate of return on the incremental investment is % (Round to one decimal place.) n 0 Net Cash Flow Project A -- $4,000 1,500 2,500 2,500 26.23% Project B...
Consider the two mutually exclusive investment projects given
in the table below for which MARR=11%. On the basis of the IRR
criterion, which project would be selected under an infinite
planning horizon with project repeatability likely?
The rate of return on the incremental investment is ?%
Homework: HW #7 Save Score: 0 of 1 pt 10 of 10 (8 complete) HW Score: 78.33%, 7.83 of 10 pts Problem 7-56 (algorithmic) Question Help Consider the two mutually exclusive investment projects given...
Just the final answers
please
Consider the two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A2 can be repeated at the same cost in the future. DB. The required service period is infinity. C. The required service period...
Consider the two mutually exclusive investment projects given in the table below for which MARR = 19%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely? Click the icon to view the cash flows for the investment projects. The rate of return on the incremental investment is %. (Round to one decimal place.) Which project would be selected on the basis of the IRR criterion? Choose the correct...
Consider the two mutually exclusive investment projects given in the table below. E: Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. B. The required service period is 3 years. C. Project A2 can be repeated at the...
2) In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15%. First draw the cash flow diagrams. Then, use the following methods to choose the best of these three feasible alternatives: Alternative 1 Alternative 2 Alternative 3 $ 11 $ 12 $ 13 Investment (first) cost (please see the table for your value) $ A1 $ A2 $ A3 Net cash flow per year...