Consider the two mutually exclusive investment projects given in the table below for which MARR =...

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Consider the two mutually exclusive investment projects given in the table below for which MARR = 16%. On the basis of the IR

n 0 Net Cash Flow Project A -- $4,000 1,500 2,500 2,500 26.23% Project B - $9,500 7,500 7,500 IRR 36.70%

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Answer 1

Answer #1

IRR

49.6%

Workings

Year	Project A	Project B	Incremental IRR
0	-4000	-9500	-5500
1	1500	7500	6000
2	2500	7500	5000
3	2500	0	-2500

		IRR	49.6%

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