e, 21 years d, 42 years 4, An engineering consultant\'s financial analyst invest

Question

e, 21 years d, 42 years 4, An engineering consultant's financial analyst investigated the cash flow of an expansion propos and computed internal rates of return of 10% and 50% (per year), The consuhant's MARK is 24 Which of the following best describes these results? 8, The proposal should be rejected, because one of the IRRs is less than MARR, b. The proposal should be accepted, because one of the IRRs exceeds the MARR. , The proposal should be rejected because more than one IRR was obtained, The proposal should be analyzed by an alternative method, such as AW, PW or EROR.

Explanation / Answer

correct option is "D"

The proposal should be analyzed by alternative method as it is not possible to get Two IRR for same proposal .so it should be evaluated by other method say NPV ,payback ,profitability index etc.

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