Assume that MARR = 12% in the following questions. a. Classify each project as either a pure or a mixed investment. b. Compute the true IRR for each investment. c. Compute the MIRR for each project at MARR = 12%. d. Determine the acceptability of each project.

Assume that MARR = 12% in the following questions. a. Classify each project as either a pure or a mixed investment. b. Compute the true IRR for each investment. c. Compute the MIRR for each project at MARR = 12%. d. Determine the acceptability of each project.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Answer all parts please

7.23 Consider the investment projects given in Table P7.23.
Net Cash Flow
n
0
1
2
3
Table P7.23
A
- $1,000
3,100
-2,200
(10%,100%)
B
- $5,000
20,000
12,000
-3,000
-80.80%
с
- $2,000
1,560
944
18%
D
-$2,000
2,800
-200
-92.45%, 32.45%
Assume that MARR = 12% in the following questions.
a. Classify each project as either a pure or a mixed investment.
b. Compute the true IRR for each investment.
c. Compute the MIRR for each project at MARR = 12 %.
d. Determine the acceptability of each project.
E
- $1,000
3,600
-5,700
3,600
35.39%

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