Consider the following financial data for $2$ mutually exclusive pharmaceutical projects:

N Project A Project B

$0($$$45,000)($$$48,000)$

$1$ $$17,500$ $$19,500$

$2$ $$19,000$ $$19,500$

$3$ $$18,000$ $$19,000$

With a MARR of $8\%$ calculate the following:

a$.$ Calculate the IRR for each project.

i$.$ Use linear interpolation to solve the IRR for each project

ii$.$ Use the Excel IRR function to determine the IRR for both the projects

b$.$ Calculate the incremental IRR analysis. Using this, which project should be selected and why?