Problem #3: Six mutually exclusive projects A, B, C, D, E, and F, are being considered by XYZ. They have been ordered by first costs so that project A has the lowest first cost, project F the largest. Specifically, detailed cash flows for Projects A and B are given below. Project A: Initial Cost of $212,840. annual benefit of $25,000 for 20 years Project B: Initial Cost of $327,540, annual benefit of $35,000 for 20 years XYZ is using a MARR of 8%. (a) Based on the cash flows and the MARR of 8%, find the IRR for Project A. | (b) Based on the cash flows for Project A and B, calculate the IRR for the increment from A to B. (c) The table below apply to all projects (A through F). The data can be interpreted as follows: the IRR on the incremental investment from project C to D is 7.5%. Based on the procedure discussed in this course, which project should be chosen using the same MARR of 8%? IRR on IRR on Increments of Investment Project overall Compared With Project Investment B C D E A ? B 9.52% ? 13.50% 13% 15% D 10% 11% 13% 7.5% E 19% 16% 6% 14% 7% F 9.00% 9% 10% 12% 6% 7.50%