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This is the second time I have submitted this question, I need help the getting the ADJ IRR. TIA


Screen Shot 2019-08-04 at 12.00.24 PM.png

Screen Shot 2019-08-04 at 12.00.24 PM.png

Docs R Us has performed a risk assessment of independent projects. They adjust
for project risk by raising the calculated IRR by 3% for low risk projects, leaving the
IRR the same for moderate risk projects, and lowering the calculated IRR by 2% for
high risk projects. Risk ADJ
mm m M .133. Lexei .188
A $21,000 $ -2,000 10% Low
8 $17,000 $ 4,000 14% Low
C $15,000 $ 2,000 12% High
D $14,000 $ 4,000 15% Average
E $ 4,000 $ -1,000 11% High A. Without capital rationing, and given their cost of capital of 12%, and ignoring
risk, based on IR which projects should Mods R Us accept? Why?

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