Question: Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 12%, which project would be worth pursuing using the concept of

Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 12%, which project would be worth pursuing using the concept of incremental IRR.

X Y
0 ($122,000) ($99,000)
1 $53,000 $54,000
2 $76,000 $64,000
3 $24,000 $12,000
4 $34,000 $22,000
Answers:
A)

Project X

B) Project Y

C) Either would be fine

D) Cannot be deduced

Could you please work the problem in excel and post the steps you used to get the answer? Could you also state how you got the delta IRR percentages?

thanks for your help!!

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