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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
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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