Net cash flows

n Project A Project B

0 -125,000 -105,000

1 30,000 20,000

2 30,000 20,000

3 110,000 120,000

The rate of return for Project A is 13.5%.

The rate of return for Project B is 17.7%.

(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=9%?

What is the rate of return on the incremental investment ?

_____% (Round to one decimal place.)