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2. Consider the following sets of investment projects. Assume that MARR = 20%. n A A B 0 $2000 -$4000 2410 -$2000 1400 1 3700

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2. Consider the following sets of investment projects. Assume that MARR = 20%. n A A B 0 $2000 -$4000 2410 -$2000 1400 1 3700 2 2930 1720 1640 (1) Compute the IRR for each project. (15%) (2) On the basis of the IRR criterion, if the three projects are mutually exclusive investments, which project should be selected? Please use only the incremental analysis. (***) (15%)

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