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Project A and B both last 1 0 years and they are mutually exclusive. The hurdle rate is 1 0 % . Project A is

Project A and B both last

10

years and they are mutually exclusive. The hurdle rate is

10 % .

Project A is bigger with an IRR of

12 %

and B is smaller with an IRR of

15 % .

You spend

10

minutes working out the incremental IRR and find it to be

12 % .

Which project would you take?

Group of answer choices

neither

either

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