Question: You have to decide between projects A and project B. No project is not an option. The cash flows are as follows: Project A: t=0:

You have to decide between projects A and project B. No project is not an option. The cash flows are as follows:

Project A: t=0: -9000; t=1: -2200; t=2: 4000; t=3: 2057

Project B: t=0: -8000; t=1: -4480; t=2: 4000; t=3: 3644

Find the IRR of the incremental project. MARR=15%. Choose the best answer.

a)

7%

b)

8%

c)

9%

d)

22%

e)

23%

f)

24%

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