Question 27 (1 point) Two mutually exclusive projects A and B have IRRs of 15% and 20%, respectively. Project A requires higher initial investment. The NPV profiles of the two projects intersect at 12%. What is the IRR of the incremental project (A ' B)? Q a) 12% O b) 20% O c) 15% Cd) 5% Question 28 (1 point) Siena Construction Company builds condos for sale and is deciding whether or not to go ahead with an investment in a new condo construction project. This project is adjacent to a block of condos built last year, which are still not entirely sold. Which of the following should not be treated as part of the new project's cashflows in calculating its NPV? O a) The cost of a survey conducted last year by the company to assess the potential market demand for the condos to be built under the new project before the decision to accept or reject the new project has to be made. 0 b) Potential effect on the sales of condos built last year. O c) Capital expenditure on an electronic pump needed for the new project. 0 d) An old equipment with a substantial market value to be used in the new project