Consider the investment projects given in Table. Assume that MARR = 12% in the following questions.
(a) Compute i* for each investment. If the problem has more than one i* identify all of them
(b) Compute IRR (true) for each project.
(c) Compute the MIRR at MARR = 12%.
(d) Determine the acceptability of each investment.
Table
|
|
Net Cash Flow
|
|
n
|
Project 1
|
Project 2
|
Project 3
|
|
0
|
-$1.000
|
-$1,000
|
-$1,000
|
|
1
|
2,500
|
1,960
|
1,400
|
|
2
|
840
|
950
|
-200
|