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What causes the time disparity ranking problem What reinvestment rate assumptions are associated with the NPV and IRR capital budgeting criteria 2 What is the unequal lives problem in ranking

What causes the time-disparity ranking problem? What reinvestment rate assumptions are associated

with the NPV and IRR capital-budgeting criteria?

 

2. What is the unequal lives problem in ranking mutually exclusive projects? How do managers deal with it?

 

3. (IRR calculation) Determine the IRR on the following projects:

a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years

b. An initial outlay of $10,000 resulting in a single free cash flow of $48,077 after 10 years

c. An initial outlay of $10,000 resulting in a single free cash flow of $114,943 after 20 years

d. An initial outlay of $10,000 resulting in a single free cash flow of $13,680 after 3 years

Apr 27 2020 View more View Less

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