Question: You are analyzing the following two mutually exclusive projects and have developed the following information. What is the incremental IRR? Project A Project B Year

You are analyzing the following two mutually exclusive projects and have developed the following information. What is the incremental IRR?

Project A Project B
Year Cash Flow Cash Flow
0 -$84,500 -$76,900
1 $29,000 $25,000
2 $40,000 $35,000
3 $27,000 $26,000

A.

11.11%
B.

13.01%
C.

14.91%
D.

16.75%
E.

17.90%

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