Question: Consider two mutually exclusive projects A & B. If you subtract the cash flows of opportunity B from the cash flows of opportunity A, then

Consider two mutually exclusive projects A & B. If you subtract the cash flows of opportunity B from the cash flows of opportunity A, then you should:

A) take opportunity A if the regular IRR exceeds the cost of capital.

B) take opportunity A if the incremental IRR exceeds the cost of capital.

C) take opportunity B if the regular IRR exceeds the cost of capital.

D) take opportunity B if the incremental IRR exceeds the cost of capital.

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