Question: How do you solve for Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 8%, which project would be worth

How do you solve for

Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 8%, which project would be worth pursuing using the concept of incremental IRR.

X Y
0 -$12,000 -$9,000
1 $2,000 $4,000
2 $6,000 $4,000
3 $4,000 $2,000
4 $4,000 $2,000

Right Answer:

Project Y

Answers:

Project X

Project Y

Either would be fine

Cannot be deduced

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