Incremental Analysis $-$ Self Study

Forsslif$-$study, consider the following two investments and do the incremental IRR and PI analysis. The opportunity cost of capital is $10\%.$ Should A be taken instead of B$?$ Yes; if you had to take one, then $A$ is better than $B.$

$\backslash$table$[[$Year$,\backslash$table$[[$Cash flows$],[$of Project A$]],\backslash$table$[[$Cash flows$],[$of Project B$]],\backslash$table$[[$Incremental$],[$Cash flows of$],[$A instead of B$],[($i$.$e$.,$ A$-$B$)]]],[0,-$$$100,000,-$$$50,000,],[1,+$$$109,001,+$$$50,001,]]$

A Institute

rigand

Should either project be accepted? No$,$ prove it to yourself; you know A is better, but now look at A by itself.