Question: Two mutually exclusive alternatives A and B are being considered: Year 0 1 2 3 4 A -$2500 $746 $746 $746 $746 $746 B -$6000

Two mutually exclusive alternatives A and B are
Two mutually exclusive alternatives A and B are being considered: Year 0 1 2 3 4 A -$2500 $746 $746 $746 $746 $746 B -$6000 $1664 $1664 $1664 $1664 $1664 The minimum attractive rate of return is 8%. After calculation we can find that the internal rates of return; for A, IRRA = 15%, for B. IRRg - 12% and for B-A, IRRB-A = 9.8%. Which of the following statements is correct? Select one: Select A because IRRBA > MARR Select B because IRRE A > MARR All other answers are wrong X o Select A because IRRA > IRRB Select neither A nor B because IRRA > MARR and IRRE > MARR

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