question4 - 14%(C-A)< 15% (MARR) so we eliminate Project...

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4) a) STEP 1: 14%(A)< 15% (MARR) so we eliminate Project A STEP 2: 17%(B)> 15% (MARR), 13%(C-B)<15% (MARR) so we eliminate Project C STEP 3: 16%(D)> 15% (MARR),18%(D-B)>15% (MARR) so we eliminate Project B STEP 4: 18%(E)> 15% (MARR), 14%(E-D)<15% (MARR) so we select Project D b) STEP 1: 16%(A)> 15% (MARR) STEP 2: 17%(B)> 15% (MARR), 12%(B-A)< 15% (MARR) so we eliminate Project B STEP 3: 17%(C)> 15% (MARR),
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Unformatted text preview: 14%(C-A)< 15% (MARR) so we eliminate Project C STEP 4: 17%(D)> 15% (MARR), 14%(D-A)< 15% (MARR) so we eliminate Project D STEP 5: 16%(E)> 15% (MARR), 17%(E-A)> 15%(MARR) so we select Project E c) All of the projects IRR are less than MARR so we select none of them. d) We would select A e) We would select E (18%) because only its IRR is greater than MARR (17.5%)....
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This note was uploaded on 03/16/2012 for the course FENS 101 taught by Professor Selçukerdem during the Fall '12 term at Sabancı University.

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