Question: Using incremental IRR rule, which of these mutually exclusive projects would you choose? Assume RRR = 12%. Show your calculations. C 0 C 1 Project

  1. Using incremental IRR rule, which of these mutually exclusive projects would you choose? Assume RRR = 12%. Show your calculations.

C0

C1

Project A (Small budget)

-1,000

1,500

Project B (Large budget)

-2,000

2,600

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