Question: Consider the two mutually exclusive investment alternatives given in Table P7.41. TABLE P7.4I (a) Determine the IRR on the incremental investment in the amount of

Consider the two mutually exclusive investment alternatives given in Table P7.41.
TABLE P7.4I

(a) Determine the IRR on the incremental investment in the amount of $5,000. (Assume that MARR = 10%.)
(b) If the firm's MARR is 10%, which alternative is the better choice?

Net Cash Flow Project Al -$15,000 7,500 7.500 7,500 23.5% Project A2 -$20,000 8,000 15,000 5,000 20% IRR

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