Question: Two projects are being considered and are mutually exclusive. Both have lives of 5 years. Project A has a first cost of $2,500 and annual

Two projects are being considered and are mutually exclusive. Both have lives of 5 years. Project A has a first cost of $2,500 and annual benefits of $746. Project B has a first cost of $5,000 and annual benefits of $1464. Assume the MAR is 8.000% and use an incremental RoR analysis. What should be selected? What is the incremental rate of return between the projects (to 3 decimal places like 8.145% or 12.671%)?

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