- 5 Consider The Following Set Of Independent Investment Projects Assume Marr 10 You Can Use A Spreadsheet Software 1 (64.63 KiB) Viewed 32 times
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5. Consider the following set of independent investment projects. Assume MARR = 10%. You can use a spreadsheet software (i.e., MS Excel) for your answers. Project n:o 1 2 3 4 5 6 - 20 1 -100 50 50 50 50 -750 100 2 -100 30 30 30 10 10 3 -16 92 -170 100 (a) Compute the annual value of each project and determine the acceptability of each. Which project would you pick if these are mutually exclusive? (You can use a spreadsheet for your answers). (b) Compute the External Rate of Return (ERR, MIRR) for each project and deter- mine the acceptability of each. 1 (c) Recall the criteria for having a unique IRR value for a project. Apply these criteria to the above projects and identify which ones are guaranteed to have a unique IRR. (d) For each project, write down an equation that will give the project's IRR as its solution. Compute the IRR for each project and determine which ones are economically feasible (you can use a spreadsheet). (e) Find the breakeven periods for the three projects.