An IT Project with MARR=10%. If this investment is tested at i=15%, its NPV is +$4550 at i=15%; and it becomes -$760 at i=20%, what is the expected ROR or IRR? (2) jlubäi An IT Project with MARR=10%.If this investment is tested ati=15%, its NPV is +$4550 ati=15%; and it becomes -$760at i=20%, what is the?expected ROR or IRR24.28 % O17.93 % O18.54 %19.28 % O

Answered: An IT Project with MARR=10%. If this…

An IT Project with MARR=10%. If this investment is tested at i=15%, its NPV is +$4550 at i=15%; and it becomes -$760 at i=20%, what is the expected ROR or IRR?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6TP: Dinaro Inc. is looking at an investment project that has an NPV of ($5,000). The hurdle rate is 8%.

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Question

An IT Project with MARR=10%. If this investment is tested at i=15%, its NPV is +$4550 at i=15%; and it becomes -$760 at i=20%, what is the expected ROR or IRR?

Definition Definition Calculation used to evaluate the investment and financing decisions that involve cash flows occurring over multiple periods. NPV is calculated as the difference between the present value of cash inflow and cash outflow. NPV is used for capital budgeting and investment planning as well as to compare similar investment alternatives.

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