Project a Costs $84,500 and Has Cash Flows of $32,300,$36,400,and

question 48

Multiple Choice

Project A costs $84,500 and has cash flows of $32,300,$36,400,and $30,000 for Years 1 to 3,respectively.Project B has an initial cost of $79,000 and has cash flows of $30,000,$36,000,and $29,000 for Years 1 to 3,respectively.What is the incremental IRR of these two mutually exclusive projects?

• A)18.11 percent
• B)−13.01 percent
• C)14.91 percent
• D)16.75 percent
• E)−20.37 percent

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