Homework Answers
Incremental IRR, can be calculated by subtracting the project with the lower cash flows from the project with the higher cash flows.
CF0 = $85,718- $76,929
=($8,789)
CF1 = $6,468
CF2= $5,879
CF3= $2,503
So, the incremental IRR is :
IRR = 37.3746
= 37.37 ( ROUNDED OFF TO TWO DECIMAL PLACES)
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