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Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 8%, which project would be worth pursuing using the concept of

Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 8%, which project would be worth pursuing using the concept of incremental IRR.

X Y

0 -$12,000 -$9,000

1 $2,000 $4,000

2 $6,000 $4,000

3 $4,000 $2,000

4 $4,000 $2,000

a. Project X b. Project Y c. Either would be fine d. Cannot be deduced

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