FOR QUESTION NUMBER 21 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use & = 15% and MARR = 20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 4,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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FOR QUESTION NUMBER 21
Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR
=20%.
Investment Capital
PhP 10,000
Expected life
5 years
Market Value
-1,000
Annual Receipts
8,000
Annual Expenses
21. Determine the IRR value of this project, is it acceptable?
a. Yes, IRR = 0.3062
b. No, IRR= 0.1981
4,000
c. Yes, IRR = 0.3264 d. No, IRR = 0.1865
Transcribed Image Text:FOR QUESTION NUMBER 21 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR =20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 21. Determine the IRR value of this project, is it acceptable? a. Yes, IRR = 0.3062 b. No, IRR= 0.1981 4,000 c. Yes, IRR = 0.3264 d. No, IRR = 0.1865
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