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You are analyzing the following two mutually exclusive projects and have developed the following information. What is the incremental IRR? Project A Project B Year
You are analyzing the following two mutually exclusive projects and have developed the following information. What is the incremental IRR?
| Project A | Project B | |
| Year | Cash Flow | Cash Flow |
| 0 | -$84,500 | -$76,900 |
| 1 | $29,000 | $25,000 |
| 2 | $40,000 | $35,000 |
| 3 | $27,000 | $26,000 |
| A. | 11.11% | |
| B. | 13.01% | |
| C. | 14.91% | |
| D. | 16.75% | |
| E. | 17.90% |
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
