Question: Consider the two mutually exclusive alternatives given in Table P7.40. Table P7.40 (a) Determine the IRR on the incremental investment in the amount of $2,000.

Consider the two mutually exclusive alternatives given in Table P7.40.
Table P7.40
Consider the two mutually exclusive alternatives given in Table P7.40.Table

(a) Determine the IRR on the incremental investment in the amount of $2,000.
(b) If the firm's MARR is 10%, which alternative is the better choice?

Net Cash Flow nProject A1 -$11,000 5,000 5,000 5,000 Project A2 -$13,000 6.200 6,200 6,200

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