PW vs IRR Set Up

When i = 0%, what is the PW?

• $20

• $10

• $15

• $5

As i increases, what happens to PW?

• Increases

• Decreases

• Nothing

When i is really REALLY large, what value does PW approach?

• Discounted PW, $10

• The first cost, $-5

• Infinity

• $0

When PW = 0, what is i?

• MARR

• 0%

• ERR

• IRR

When is best to use IRR for comparisons?

• When there is uncertainty in future cash flows

• When projects have very different sizes

• When we are interested in recovering capital quickly