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Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both

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Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.18%. a. If MARR is 12% per year, which alternative is better? b. What is the IRR on the incremental cash flow [ie, (y-xy? C. If the MARR is 27.5% per year, which alternative is better? d. What is the simple payback period for each alternative? e. Which alternative would you recommend

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