show work 2. An investment is assumed to produce the following cash flows: + Cash flow $-19,000 EOY 0 1 10,000 23456 2 17,000 3 -7,000 -6,000 5 12,000 10,000 (a) What is the internal rate of return for this investment? (b) Is the investment conventional or nonconventional? Pure or mixed? Why? (c) If the MARR for the company is 15%, should this investment be accepted?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1CMA
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2. An investment is assumed to produce the following cash flows:
+
Cash flow
$-19,000
EOY
0
1
10,000
23456
2
17,000
3
-7,000
-6,000
5
12,000
10,000
(a) What is the internal rate of return for this investment?
(b) Is the investment conventional or nonconventional? Pure or mixed? Why?
(c) If the MARR for the company is 15%, should this investment be accepted?
Transcribed Image Text:show work 2. An investment is assumed to produce the following cash flows: + Cash flow $-19,000 EOY 0 1 10,000 23456 2 17,000 3 -7,000 -6,000 5 12,000 10,000 (a) What is the internal rate of return for this investment? (b) Is the investment conventional or nonconventional? Pure or mixed? Why? (c) If the MARR for the company is 15%, should this investment be accepted?
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