Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it wishes to invest in new revenue producing projects. Three independent sets of mutually exclusive projects have been developed. The useful life of each is five years and all market values are zero. You have been asked to perform an IRR analysis to select the best combination of projects. If the MARR is 12% per year, which combination of projects would you recommend?
Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it wishes to invest in new revenue producing projects. Three independent sets of mutually exclusive projects have been developed. The useful life of each is five years and all market values are zero. You have been asked to perform an IRR analysis to select the best combination of projects. If the MARR is 12% per year, which combination of projects would you recommend?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter20: The Problem Of Adverse Selection Moral Hazard
Section: Chapter Questions
Problem 3MC
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Bawal gumamit ng excel( Don't use Excel)
A small company has P20,000 in surplus capital that it wishes to invest in new revenue producing
projects. Three independent sets of mutually exclusive projects have been developed. The useful
life of each is five years and all market values are zero. You have been asked to perform an
analysis to select the best combination of projects. If the MARR is 12% per year, which
combination of projects would you recommend?
![Capital investment (P)
5,000
7,000
Project
Net annual benefits (P)
1,500
1,800
Mutually exclusive
Al
A2
Mutually exclusive
B1
12,000
2,000
4,000
4,000
4,500
B2
18,000
14,000
Mutually exclusive
C1
C2
18,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67bd789b-aaca-4cff-a067-6fb868f2674f%2Fffa73ba3-48ee-4e1f-85f9-8d3e02cdd972%2F4lol2uf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Capital investment (P)
5,000
7,000
Project
Net annual benefits (P)
1,500
1,800
Mutually exclusive
Al
A2
Mutually exclusive
B1
12,000
2,000
4,000
4,000
4,500
B2
18,000
14,000
Mutually exclusive
C1
C2
18,000
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