Question: Consider the two mutually investment projects given in the table below for which MARR=12%. On the basis of the IRR criterion, which project would be

Consider the two mutually investment projects given in the table below for which MARR=12%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely?

The rate of return on the incremental investment is ____%?

n Project A Project B

0

-$4000 -$9000
1 $2000 $7500
2 $2500 $7500
3 $2500 --------

IRR fr A =32.64% IRR for B 42.01%

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