Question
All-American Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 7%. Calculate the incremental IRR (aka cross-over rate)
All-American Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 7%. Calculate the incremental IRR (aka cross-over rate) for the two projects. (Enter percentages as decimals and round to 4 decimals).
| Year | Project A | Project B |
| 0 | -550,000 | -1,000,000 |
| 1 | 175,000 | 300,000 |
| 2 | 175,000 | 300,000 |
| 3 | 175,000 | 300,000 |
| 4 | 175,000 | 300,000 |
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Victorian Literature And Finance
Authors: Francis O'Gorman
1st Edition
0199281920, 978-0199281923
