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

Question

Quizplus · Accepted Answer

The Answer of 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

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