Question: Mr. Clops is tempted to take A, which has the higher IRR. However, Mr. Clops is wrong. Show him how to adapt the IRR rule


Mr. Clops is tempted to take A, which has the higher IRR. However, Mr. Clops is wrong. Show him how to adapt the IRR rule to choose the best project Multiplen Choice In this case project B has a higher IRR than project A. However, project A is half the size of project B. Mr. Clops can compute the incremental IRR (IIRR) Mr. Clops should take project A when the discount rate is less thant the IIRR- TF\% In this case project A has a higher IRR than project B. However, project A is half the size of project B. Mr. Clops can compute the incremental IRR (IIRR). Mr. Clops should take project B when the discount rate is more than thant the IIRR= 6.5% In this case project A has a higher IRR than project B. However, project A is half the size of project B. Mr. Clops can compute the incremental IRR (IIRR). Mr. Clops should take project A when the discount rate is less thant the IIRR= 7.7% In this case project A has a higher IRR than project B. However, project A is half the size of project B. Mr. Clops can compute the incremental IRR (IIRR). Mr. Clops should take project B when the discount rate is less thant the RR=4.5% In this case project A has a higher IRR than project B. However, project A is half the size of project B. Mr. Clops can compute the incremental IRR (IIRR). Mr. Clops should take project B when the discount rate is more than thant the IIRR= 4.5%
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