Evaluate the Following Mutually Exclusive Projects Using IRR as a Selection

question 91

Essay

Evaluate the following mutually exclusive projects using IRR as a selection criterion.Assuming the discount rate to be 14 percent, which project-if either-would be selected? Project A costs $50,000 and returns $15,000 after-tax annually.Project B costs $35,000 and returns $11,000 after-tax annually.Both projects last five years.

---

Definitions:

Correlational Techniques

Statistical methods used to determine the relationship or association between two variables.

Statistically

Pertaining to the use of or determined through statistics.

.1 Level

Often referred to as the alpha level, it is a threshold used in hypothesis testing to determine if the observed data are statistically significant.

Visually

Pertaining to or relating to the ability to see or the process of vision.