You have 3 investment proposals, but can only choose two of them. Calculate the Incremental IRR values missing in this table. Which two proposals will you choose if your MARR is 12%?

Project Proposal Net first cost Net annual Savings Incremental IRR

1 do nothing 0 0 2 A 40,000 20,000

2 vs 1 = 34.9% 3 B 110,000 30,000

3 vs 2 <0 %

4 C 130,000 45,000

5 AB 150,000 50,000

6 AC 170,000 65,000

7 BC 240,000 75,000 7 vs. 6 < 0%

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