the compound s a pin supported by B and supported ...
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the compound s a pin supported by B and supported
1. DeYong, lnc. is faced with three investment proposals, A, B and C. The proposals have the cash flow profiles shown below. The planning horizon is 5 years. Proposals A and C are mutually exclusive, Proposal C is contingent on B being selected. There is a budgetary limit of $70,000 on the initial investment. EOY Proposal A Proposal B Proposal C $10,000 3,000 3,000 3,000 3,000 5,000 19% 50,000$25 115,00010, 5,000 10, 5,00010, 15,000 10 20,000 10, IRR 17% 29% a) Form the set of mutually exclusive, collectively exhaustive alternatives. Give at least one reason for eliminating any alternatives from consideration. b) Use a properly constructed IRR analysis to select the best alternative. Show all cash flows and all work. Excel would be helpful here MARR-30% Repeat part (b) using a MARR of 15%
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