Two investments have the following pattern of expected returns: Investment A Year 4 Year 1 Year 2 BTCF $6,300 $11,300 Year 3 Year 4 $13,300 $16,300 $133,000 (Sale) Investment B Year 1 Year 2 BTCF $3,300 $5,300 Year 4 Year 3 Year 4 (Sale) $2,300 $6,300 $193,000 Investment A requires an outlay of $123,000 and Investment B requires an outlay of $133,000. Required: a. What is the BTIRR on each investment? b. If the BTIRR were partitioned based on BTCFO and BTCFS' what proportions of the BTIRR would be represented by each? c. Which investment would be preferable? Complete this question by entering your answers in the tabs below. Required Required Required A B с What is the BTIRR on each investment? (Round your answers to 2 decimal places.) Investment Investment A B BTIRR % % Required A Required B >
Two investments have the following pattern of expected returns: Investment A Year 4 Year 1 Year 2 BTCF $6,300 $11,300 Year 3 Year 4 $13,300 $16,300 $133,000 (Sale) Investment B Year 1 Year 2 BTCF $3,300 $5,300 Year 4 Year 3 Year 4 (Sale) $2,300 $6,300 $193,000 Investment A requires an outlay of $123,000 and Investment B requires an outlay of $133,000. Required: a. What is the BTIRR on each investment? b. If the BTIRR were partitioned based on BTCFO and BTCFS' what proportions of the BTIRR would be represented by each? c. Which investment would be preferable? Complete this question by entering your answers in the tabs below. Required Required Required A B с What is the BTIRR on each investment? (Round your answers to 2 decimal places.) Investment Investment A B BTIRR % % Required A Required B >
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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