You have 3 projects as described in the table below. This is a 5-year project...
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Accounting
You have 3 projects as described in the table below. This is a 5-year project with an MARR of 4%. a) (5 points) Use the IRR method to select the most feasible alternative. b) (2 points) Calculate the profitability index (PI) for each project. Explain how we should interpret the PI values with these types of projects and which alternative should be chosen in this particular case? A -10000 -2000 -2000 -2000 -2000 500 -6000 -1000 -1000 -3000 -3000 -4000 -10200 -2000 -2000 -1200 -1200
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