Question: The Get Smart company has 5 mutually exclusive projects under consideration with costs as shown below. Each of the projects has a 10 year life

The Get Smart company has 5 mutually exclusive projects under consideration with costs as shown below. Each of the projects has a 10 year life and the company MARR is 10%. Using incremental IRR analysis, which of the projects should be done.

Project First Cost Annual Benefits
A $45000 8500
B 36000 6500
C 56000 9400
D 52000 9500
E 41000 7200

Determine the incremental IRR for each comparison made. Which project should be selected.

(Problem Hint: Incremental IRR for E-B = 6.64%.)

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