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
Problem 1PS
Related questions
Question
Consider the following investment projects.
Determine the range of MARR for which Project 2 would be preferred over
Project 1.
(a) MARR ≤ 12.5%
(b) 13% ≤ MARR s 15%
(c) 16% ≤ MARR
(d) Not enough information to determine
Transcribed Image Text:Net Cash Fltow.
Year (n)
Project 1
Project 2
--$1,200
--$2,000
1
600
1,500
2
1,000
1,000
IRR
19.65%
17.54%
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