Five projects form the mutually exclusive, collectively exhaustive set under consideration. The cash flow profiles for the five projects are given in the table below.

Information on each project was fed into a computer program that calculated the IRRs and incremental IRRs as shown in the table below. Unfortunately, when the table was printed, one of the cells was overprinted with \(X\) s and was unreadable. As the resident expert on incremental IRR analysis, you have been asked to assist.

a. Specify the incremental cash flow profile that must be analyzed to determine the value in the overprinted incremental IRR cell.

b. Determine the incremental IRR value that belongs in the overprinted cell.

c. If MARR is 37 percent/year, which project is preferred?

d. Based on the data in the table, if MARR is 40 percent, specify whether the present worth of each project would be positive, negative, or zero when evaluated at MARR?

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Null A B C D Life 10 years 10 years 10 years 10 years 10 years Initial Investment $0 $600,000 $800,000 $470,000 $540,000 Salvage Value $0 $70,000 $130,000 $65,000 $200,000 Annual Revenues $0 $400,000 $600,000 $260,000 $320,000 Annual Expenses $0 $130,000 $270,000 $70,000 $120,000