You Are Analyzing Two Mutually Exclusive Projects and Have Developed

question 39

Multiple Choice

You are analyzing two mutually exclusive projects and have developed the following information.What is the incremental IRR? $\begin{array}{cll}\underline{\text { Year }} & \begin{array}{l}\text { Project A } \\\underline{\text { Cash Flow }}\end{array} & \begin{array}{l}\text { Project B } \\\underline{\text { Cash Flow }}\end{array} \\ 0 &-\$ 84,500 &-\$76,900\\1 & \$ 29,000 & \$ 25,000 \\2 & \$ 40,000 & \$ 35,000 \\3 & \$ 27,000 & \$ 26,000\end{array}$

• A)11.11%
• B)13.01%
• C)14.91%
• D)16.75%
• E)17.90%

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