Question
Use the table for the question(s) below. Consider two mutually exclusive projects with the following cash flows: Project C/F0 C/F1 C/F2 C/F3 C/F4 C/F5 C/F6
Use the table for the question(s) below. Consider two mutually exclusive projects with the following cash flows:
| Project | C/F0 | C/F1 | C/F2 | C/F3 | C/F4 | C/F5 | C/F6 |
| A | $(41,215) | $12,500 | $14,000 | $16,500 | $18,000 | $20,000 | N/A |
| B | $(46,775) | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
What is one of the incremental IRRs for project B over project A? Would you feel comfortable basing your decision on the incremental IRR?
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
