Consider two investments A and B with the sequences of cash flows given in the table below.

?(c) If A and B are mutually exclusive? projects, which project would you select based on the rate of return on incremental investment at

MARRequals=6?%?

The rate of return on the incremental investment is ?

Net Cash Flow Project B $115,000 25,000 25,000 150,000 Project A 0 $135,000 35,000 35,000 140,000 2