10. Consider two investments A and B with the sequences of cash flows given in the table below. 8 Click the icon to view the cash flows for the projects. (a) Compute the IRR for each investment. The rate of return for Project A is The rate of return for Project B is %. (Round to one decimal place.) %. (Round to one decimal place.) (b) At MARR = 9%, determine the acceptability of each project. Would you accept Project A? Choose the correct answer below. No Yes Would you accept Project B? Choose the correct answer below. Yes No (c) If A and B are mutually exclusive projects, which project would you select based on the rate of return on incremental investment at MARR=9%? The rate of return on the incremental investment is %. (Round to one decimal place.) Which project would you select based on the rate of return on incremental investment at MARR=9%? Choose the correct answer below. Project A Project B 8: More Info Net Cash Flow Project A -$105,000 Project B -$85,000 171 35,000 35,000 25,000 25,000 2 3 140,000 150,000 9/11 11. A manufacturing firm is considering the mutually exclusive alternatives given in the table below. Determine which project is a better choice at a MARR = 15% based on the IRR criterion. n 1 2 Net Cash Flow Project A1 -$4,000 2,600 2,800 Project A2 -$5,000 3,600 3,200 The IRR on incremental investment is %. (Round to one decimal place.) Which project is a better choice at a MARR = 15%? Choose the correct answer below. Project A2 Project A1 12. Consider the two mutually exclusive alternatives given in the table below. n Net Cash Flow Project A1 0 -$12,000 Project A2 -$14,000 1 5,000 6,200 2 5,000 6,200 3 5,000 6,200 (a) Determine the IRR on the incremental investment in the amount of $2,000. The IRR on incremental investment is %. (Round to one decimal place.) (b) if the firm's MARR is 10%, which alternative is the better choice? Choose the correct answer below. Project A1 Project A2