Use the Table for the Question(s) Below

question 21

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-The incremental IRR of Project B over Project A is closest to:

• A) 12.6%
• B) 23.3%
• C) 1.7%
• D) 17.3%

---

Definitions:

External Benefit

A benefit that results from an activity but affects uninvolved third parties who did not choose to incur that effect, often leading to market inefficiencies.

Inefficient Equilibrium

A state in a market where resources are not allocated optimally, leading to wastage or loss of potential gain.

Price and Quantity

The relationship between the price of an item and how much of that item is available or demanded at that price point.

Government Licensing

The requirement of official permission or a permit from a government authority to legally perform certain activities, operate a business, or practice a profession.