Project a Has an Initial Cost of $16,400 and Cash

question 15

Multiple Choice

Project A has an initial cost of $16,400 and cash flows of $5,100,$6,800,and $6,900 for Years 1 to 3,respectively.Project B has an initial cost of $21,200 and cash flows of $8,300,$7,900,and $7,700 for Years 1 to 3,respectively.What is the incremental IRR_B-A?

• A)2.89%
• B)4.07%
• C)5.91%
• D)6.75%
• E)7.90%

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Definitions:

Newborns

Infants who are in the very first weeks of life, typically up to one month old.

Social Smiles

Smiles that are expressed intentionally by infants, starting around the age of 6 to 8 weeks, in response to interactions with humans, indicating early social communication.

Attachment

A deep and enduring emotional bond that connects one person to another across time and space.

Birth

The act or process of bearing or bringing forth offspring from the womb.