Project Water Has an Initial Cost of $598,900 and Projected

question 70

Multiple Choice

Project Water has an initial cost of $598,900 and projected cash flows of $302,000,$264,000,and $250,000 for Years 1 to 3,respectively.Project Aqua has an initial cost of $512,200 and projected cash flows of $290,000,$214,000,and $220,000 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)2.75%
• D)11.06%
• E)4.37%

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