Four mutually exclusive alternotives are compared and their internal rate of return (IRR) values are as follows: A = 11.2%; B= 12.3%; C- 13.1%; and D=128%. Which alternative(s) must be selected it MARR = 11%PO a All aiternativesb. Alternotives Cand DC. None of the alternativesd. Alternative CO e. Insutficient information to decide

If the MARR example 10% for acceptable projects is accepted a project if the IRR is greater than…

Answered: our mutually exclusive aiternotnves are…

our mutually exclusive aiternotnves are compared and their intefnal rate of return (IR) values afe as follows: A 1.2%; 123%; C13.1%; and D 28%. Which alternative(s) must be selected if MARR = 11%?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 4QE

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Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

Four mutually exclusive alternotives are compared and their internal rate of return (IRR) values are as follows: A = 11.2%; B= 12.3%; C- 13.1%; and D=
128%. Which alternative(s) must be selected it MARR = 11%P
O a All aiternatives
b. Alternotives Cand D
C. None of the alternatives
d. Alternative C
O e. Insutficient information to decide

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