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Compute the (a) net present value, (b) internal rate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent. Project UV $ (96,500) Year Project AB Project LM $(90,000) $(100,000) 39,000 (55,000) 39,000 100,000 3. 39,000 147,500 100,000

Compute the (a) net present value, (b) internal rate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent. Project UV $ (96,500) Year Project AB Project LM $(90,000) $(100,000) 39,000 (55,000) 39,000 100,000 3. 39,000 147,500 100,000

Essentials Of Investments
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
Section: Chapter Questions
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Which project(s) should be purchased if they are independent? Which project(s) should be purchased if they are mutually exclusive?

9-17 Compute the (a) net present value, (b) internal rate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent. Year Project AB Project LM Project UV *$ (90,000) $(100,000) $ (96,500) 1 39,000 (55,000) 2 39,000 100,000 3 39,000 147,500 100,000 Which project(s) should be purchased if they are in- dependent? Which project(s) should be purchased if they are mutually exclusive?
Transcribed Image Text:9-17 Compute the (a) net present value, (b) internal rate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent. Year Project AB Project LM Project UV *$ (90,000) $(100,000) $ (96,500) 1 39,000 (55,000) 2 39,000 100,000 3 39,000 147,500 100,000 Which project(s) should be purchased if they are in- dependent? Which project(s) should be purchased if they are mutually exclusive?
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