Six mutually exclusive projects A, B, C, D, E, and F, are being considered by XYZ. They have been ordered by first costs so that project A has the lowest first cost, project F the largest. Specifically, detailed cash flows for Projects A and B are given below.

Project A: Initial Cost of $323,120. annual benefit of $50,000 for 15 years

Project B: Initial Cost of $494,310. annual benefit of $70,000 for 15 years

Also, the table below apply to all projects (A through F). The data can be interpreted as follows: the IRR on the incremental investment from project C to D is 13%.

First, calculate both the IRR for Project A and the Increment IRR from Project A to Project B.

Next, Use the table to decide which project should be selected. MARR for XYZ is set at 10%

\begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{ Project } & \multirow{2}{*}{ IRR on overall Investment } & \multicolumn{5}{|c|}{ IRR on Increments of Investment Compared With Project } \\ \cline { 3 - 7 } & A & A & C & D & E \\ \hline A & ? & & & & \\ \hline B & 11% & ? & & & & \\ \hline C & 11% & 9% & 11% & & & \\ \hline D & 13% & 11% & 15% & 13% & & \\ \hline E & 19% & 16% & 16% & 14% & 9% & \\ \hline F & 15% & 10.5% & 14% & 13% & 6% & 9.50% \\ \hline \end{tabular}