Question: Suppose we have four mutually exclusive projects, D1, D2, D3, and D4, whose internal rates of return on incremental investment between the projects is given
Suppose we have four mutually exclusive projects, D1, D2, D3, and D4, whose internal rates of return on incremental investment between the projects is given as follows:
IRR (D1 - D2) = 27.62%
IRR (D1 - D3) = 14.26%
IRR (D1 - D4) = 25.24%
IRR (D3 - D2) = 30.24%
IRR (D2 - D4) = 17.34%
IRR (D3 - D4) = 16.14%
Which project should be selected at MARR 15%?
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