Question: Godfall Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Calculate the incremental IRR (aka cross-over rate)
Godfall Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Calculate the incremental IRR (aka cross-over rate) for the two projects. (Enter percentages as decimals and round to 4 decimals).
| Year | Project A | Project B |
| 0 | -8,000,000 | -3,250,000 |
| 1 | 2,000,000 | 850,000 |
| 2 | 2,000,000 | 850,000 |
| 3 | 2,000,000 | 850,000 |
| 4 | 2,000,000 | 850,000 |
| 5 | 2,000,000 | 850,000 |
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