Yep Compan following cash flows: year \"zero\"- 253 dollars (outflow): year 341

Question

Yep Compan following cash flows: year "zero"- 253 dollars (outflow): year 341 dollars (inflow). Project H generates the following cash flows: year "zero" - 200 dollars (outflow); year 1-180 dollars (inflow); year 2-100 dollars (inflow). The MARR is 10 %. Compute the Internal Rate of Return (IRR) of the BEST project. (note 1: if your answer is 10.25% then write 10.25 as your answer, not 0.1025) (note2: round your answer to two decimal places and do not include spaces, currency signs, plus or minus signs, or commas) y is considering investing in Project G or Project H. Project G generates the 1- 194 dollars (nflowl; year 2-

Explanation / Answer

The IRR of the projects are -

Since IRR of project G - project H is greater than MARR, then the best project is the project H, its IRR is 29%

Project G Project H year Amount Amount 0 -253 -200 1 194 180 2 341 100 ROR 111% 40%

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