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Six mutually exclusive projects A, B, C, D, E, and F, are being considered by ABC Inc. They have been ordered by first costs so
Six mutually exclusive projects A, B, C, D, E, and F, are being considered by ABC Inc. 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 B is given below. Project B: Initial Cost of $215,727. annual benefit of $30,000 for 15 years 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 Dis 8.5%. Which project should be chosen using MARR of 10%? File: IRR-Matrix-D.pdf IRR on Increments of Investment IRR on overall Investment Project Compared with Project A B D E 8.50% B ? 12% 10.50% 9.5% 9.5% D 12.00% 9% 9% 8.5% E 16.00% 14% 7% 11% 9% F 10.50% 10% 11% 12% 8% 8.50% Project B should be selected. Project C should be selected. Project D should be selected. Project E should be selected. Project F should be selected
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