Consider the following cash flow diagram related to project ay of company X. The company...
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Accounting
Consider the following cash flow diagram related to project ay of company X. The company in question can easily invest money at the rate of 10% (external investing rate) and borrow money at the rate of 5% (external borrowing rate). a) Determine the maximum number of internal rate of returns (IRRs). (5 points) b) Use IRR/ERR to decide if project ay is worthwhile for company X under MARR = 6%. (25 points) (You must use gradient and annuity factors!) 500 100 300 500 3 300 8
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