There are two altematives: A, and A2 Use trial & error and interpolation methods for finding exact value of IRR for difference between two alternatives (Draw cash flow diagram of difference). Which project is a better choice? Given MARR is 9%. Write formula and show your solution step by step A1 -$12,000 4,200 6,225 6,330 A2 -$1,000 n 1 800 2 500 3 500

Essentials Of Investments
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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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There are two altematives: A, and A,
Use trial & error and interpolation methods for finding exact value of IRR
for difference between two alternatives (Draw cash flow diagram of
difference).
Which project is a better choice? Given MARR is 9%.
Write formula and show your solution step by step
A1
-$12,000
4,200
A2
-$1,000
n
800
6,225
500
6,330
500
IRR
17.43%
40.96%
1.
Transcribed Image Text:There are two altematives: A, and A, Use trial & error and interpolation methods for finding exact value of IRR for difference between two alternatives (Draw cash flow diagram of difference). Which project is a better choice? Given MARR is 9%. Write formula and show your solution step by step A1 -$12,000 4,200 A2 -$1,000 n 800 6,225 500 6,330 500 IRR 17.43% 40.96% 1.
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