Project a Has an Initial Cost of $211,400 and Projected

question 12

Multiple Choice

Project A has an initial cost of $211,400 and projected cash flows of $46,200,$64,900,and $135,800 for Years 1 to 3,respectively.Project B has an initial cost of $187,900 and projected cash flows of $43,200,$59,700,and $125,600 for Years 1 to 3,respectively.What is the incremental IRR_A-B of these two mutually exclusive projects?

• A)8)67%
• B)−6.93%
• C)11.06%
• D)−9.62%
• E)9)37%