Question: Consider the two mutually exclusive investment alternatives given in the table below. Net Cash Flow Project A1 Project A2 - $12,000 - $15,000 1

Consider the two mutually exclusive investment alt

Consider the two mutually exclusive investment alternatives given in the table below. Net Cash Flow Project A1 Project A2 - $12,000 - $15,000 1 7,500 8,000 7,500 14,000 7,500 5,000 IRR 39.45% 38.27% (a) Which project would be selected based on the rate of return decision criterion? (Assume that MARR = 10%.) The IRR on incremental investment is %. (Round to one decimal place.)

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