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Question 2 (15 points) 2 (15=4+6+5) (i) What is internal rate of return? How is it used to determine the most suitable project from five alternative projects, A, B, C, D, E?. (ii) What is B/C ratio of a project? How is it used to select the most suitable project? Is it prone to manipulation by an analyst? Explain. Is it true that neither the B/C ratio nor the IRR shed light on the contribution of a public project to GDP of a country? Explain with an example. iii. Format BI U Question 2 (15 points) 2 (15=4+6+5) (i) What is internal rate of return? How is it used to determine the most suitable project from five alternative projects, A, B, C, D, E?. (ii) What is B/C ratio of a project? How is it used to select the most suitable project? Is it prone to manipulation by an analyst? Explain. Is it true that neither the B/C ratio nor the IRR shed light on the contribution of a public project to GDP of a country? Explain with an example. iii. Format BI U
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