The following cash flow estimates have been developed for two mutually exclusive investment alternatives. a. Find the

Question:

The following cash flow estimates have been developed for two mutually exclusive investment alternatives.

a. Find the internal rate of return on the incremental cash flow (A2-A1).
b. Calculate the PW on total investment for each alternative for a MARR of 16% and select the best alternative.
c. Calculate the PW on incremental investment for each alternative for a MARR of 16% and select the best alternative.

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...