A Consider the following 5 investments. Which one should be selected based upon the IRR. (10 pts) Assume that the MARR is .08
A |
B |
C |
D |
E |
|
First costs |
5000 |
2000 |
7000 |
3000 |
6500 |
Annual cash flows year 1 -4 |
900 |
200 |
1050 |
500 |
900 |
Year 5 cash flow |
4000 |
1400 |
6300 |
2500 |
6300 |
b. Perform sensitivity analysis with decision reversal on the year 5 cash flows for the one you selected in part a.
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