Consider the following two mutually exclusive investment projects assuming that “do-nothing” option is not available. n project a1 project a2 0 -10,000 -15,000 1 5,000 20,000 2 5,000 3 5,000 a)To use the IRR criterion, what assumption must be made in order to compare a set of mutually exclusive investments with unequal service lives? a)With the assumption defined in part (a), determine the range of MARR that will indicate the selection of project A1. Can you give me detailed answer ?

Consider the following two mutually exclusive investment projects assuming that “do-nothing” option is not available.

n project a1 project a2
0 -10,000 -15,000
1 5,000 20,000
2 5,000
3 5,000

a)To use the IRR criterion, what assumption must be made in order to compare a set of mutually exclusive investments with unequal service lives?

a)With the assumption defined in part (a), determine the range of MARR that will indicate the selection of project A1.

Can you give me detailed answer ?

n project a1 project a2
0 -10,000 -15,000
1 5,000 20,000
2 5,000
3 5,000

a)To use the IRR criterion, what assumption must be made in order to compare a set of mutually exclusive investments with unequal service lives?

a)With the assumption defined in part (a), determine the range of MARR that will indicate the selection of project A1.

Can you give me detailed answer ?

 

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