Answered: The table below shows internal rate of…

The table below shows internal rate of return for three investment projects A, B and C and there differences. By capital investment, A B> A O b. A>C> B O c.C>A> B O d. B>A> C O e. A>B> C

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 1E: Average rate of return The following data are accumulated by Watershed Inc. in evaluating two...

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Question

The table below shows internal rate of return for three investment projects A, B and C and there differences.
By capital investment, A<B<C. If the projects have the same useful life and MARR=15%, arrange the project
based on decreasing PW. ( from the one with the highest PW to the one with the lowest PW.
Comparison A
B-A
C-A
C-B
IRR%
19.5
16.7
17.4
16.2
15.4
17.6
Select one:
O a. C> B> A
O b. A>C> B
O c. C>A> B
O d. B>A> c
O e. A>B> C

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