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

Consider the two mutually exclusive alternatives given in Table P7.40.TABLE P7.40 n 0 1 2 3 Net Cash Flow Project A1

(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?

TABLE P7.40 n 0 1 2 3 Net Cash Flow Project A1 -$12,000 5,000 5,000 5,000 Project A2 -$14,000 6,200 6,200 6,200

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