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Consider two investments with the following sequences of cash flows: n project A project b 0 $-115,000 $-100,000 1 40000 30000 2 40000 30000 3
Consider two investments with the following sequences of cash flows:
| n | project A | project b |
| 0 | $-115,000 | $-100,000 |
| 1 | 40000 | 30000 |
| 2 | 40000 | 30000 |
| 3 | 150000 | 160000 |
C. If A and B are mutually exclusive projects, which project would you select based on the rate of return on incremental investment at MARR= 4% ?
The rate of return on the incremental investment is ____ ?
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