Question: Use the table for the question(s) below. Consider the following two projects with cash flows in $: Project Year 0 Cash Flow Year 1 Cash

Use the table for the question(s) below. Consider the following two projects with cash flows in $:

Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Discount Rate
A -100 40 50 60 N/A .15
B -73 30 30 30 30 .15

The maximum number of incremental IRRs that could exist for project B over project A is:
  • A. 1.
  • B. 2.
  • C. 0.
  • D. 3.

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