What are the irrs and mirrs of the three projects

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Internal rate of return and modified internal rate of return.

Quark Industries has three potential projects, all with an initial cost of $1,700,000. Given the discount rate and the future cash flow of each project, what are the IRRs and MIRRs of the three projects for Quark Industries?

Cash Flow Project M Project N Project O
Year 1 $400,000 $600,000 $900,000
Year 2 $400,000 $600,000 $700,000
Year 3 $400,000 $600,000 $500,000
Year 4 $400,000 $600,000 $300,000
Year 5 $400,000 $600,000 $100,000
Discount rate 8% 11% 17%

a. What is the IRR for project M?

b. What is the IRR for project N?

c. What is the IRR for project O?

 

Reference no: EM131928536

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