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Questions 1-2 are based on the information given in the following fable. Year A -$2.500 -$6,000 - 746 1.664 2 746 1,664 746 1.664 746

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Questions 1-2 are based on the information given in the following fable. Year A -$2.500 -$6,000 - 746 1.664 2 746 1,664 746 1.664 746 1.664 5 746 1.664 IRR 15%% 12% 1. The internal rate of return on the incremental cash flows is closest to a. 47%. b. 6%% C. 8% d. 10%. e. 12%% 2. Based on the information in the previous question, if only one project can be undertaken and the company's management requires a MARR of 8% on all new investment projects, which alternative do you recommend? a. A. b. B. c. Both projects are equally worthwhile. d. Neither project should be undertaken. e. Cannot be determined

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