Project Water has an initial cost of $598,900 and projected cash flows of $302,000, $264,000, and $250,000 for Years 1 to 3, respectively. Project Aqua
Project Water has an initial cost of $598,900 and projected cash flows of $302,000, $264,000, and $250,000 for Years 1 to 3, respectively. Project Aqua has an initial cost of $512,200 and projected cash flows of $290,000, $214,000, and $220,000 for Years 1 to 3, respectively. What is the incremental IRRAB of these two mutually exclusive projects?
Multiple Choice
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8.67%
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6.93%
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2.75%
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11.06%
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4.37%
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Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
