- 3 Consider The Following Set Of Independent Investment Projects 1 2 3 Project A B N 0 10000 0 0 19650 10000 5937 1 (36.55 KiB) Viewed 13 times
3. Consider the following set of independent investment projects. 1 2 3 Project A B n:0 - $10000 0 0 19650 -$10000 5937
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3. Consider the following set of independent investment projects. 1 2 3 Project A B n:0 - $10000 0 0 19650 -$10000 5937
3. Consider the following set of independent investment projects. 1 2 3 Project A B n:0 - $10000 0 0 19650 -$10000 5937 5937 5937 -$10000 6800 5800 4800 -$10000 5000 6000 7000 C D (a) Compute the net present values and net annual values of each project at MARR = 10%. (b) Determine which of projects these are economically acceptable (feasible), and choose one of the alternatives using an equivalence criterion. (c) Calculate the Internal Rate of Return (IRR) of the three projects. Explain why we cannot use IRR values to compare different project directly.