A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate (a) the internal rate of return (Hint: 20%<=i*<=22%) and (b) the composite rate of return (Hint: 18%<=i’<=20%), using a reinvestment rate of 20% per year. Should the company continue to make clutch disks? Year Cash flow,
$ 0 6000
1 -10000
2 12000
3 -10400