An IT Project with MARR=10%. If this investment is tested at i=15%, its NPV is +$4550 at i=15%; and it becomes -$760 at i=20%, what is the expected ROR or IRR? (2) jlubäi An IT Project with MARR=10%.If this investment is tested ati=15%, its NPV is +$4550 ati=15%; and it becomes -$760at i=20%, what is the?expected ROR or IRR24.28 % O17.93 % O18.54 %19.28 % O

Answered: An IT Project with MARR=10%. If this…

An IT Project with MARR=10%. If this investment is tested at i=15%, its NPV is +$4550 at i=15%; and it becomes -$760 at i=20%, what is the expected ROR or IRR?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An IT Project with MARR=10%. If this investment is tested at i=15%, its NPV is +$4550 at i=15%; and it becomes -$760 at i=20%, what is the expected ROR or IRR?

Definition Definition Calculation used to evaluate the investment and financing decisions that involve cash flows occurring over multiple periods. NPV is calculated as the difference between the present value of cash inflow and cash outflow. NPV is used for capital budgeting and investment planning as well as to compare similar investment alternatives.

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