2. For an investor with a minimum rate of return of 8.0%: a) Rank the following non- mutually exclusive alternative. b) For a time zero budget of $1,400, which of the projects would you select? Use NPV, GRR and Pl analysis.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. For an investor with a minimum rate of return of 8.0%: a) Rank the following non-
mutually exclusive alternative. b) For a time zero budget of $1,400, which of the
projects would you select? Use NPV, GRR and Pl analysis.
Year
1
2
3
4
Project A
-$200
$75
$75
$75
$75
Project B
-$450
$155
$155
$155
$155
Project C
-$700
$250
$250
$250
$250
Project D
-$950
$380
$330
$280
$230
Transcribed Image Text:2. For an investor with a minimum rate of return of 8.0%: a) Rank the following non- mutually exclusive alternative. b) For a time zero budget of $1,400, which of the projects would you select? Use NPV, GRR and Pl analysis. Year 1 2 3 4 Project A -$200 $75 $75 $75 $75 Project B -$450 $155 $155 $155 $155 Project C -$700 $250 $250 $250 $250 Project D -$950 $380 $330 $280 $230
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