Two mutually exclusive investment plans have the following cash


Question Description:

25

Two mutually exclusive investment plans have the following cash flows below: Project A: n(0) = -300, n(1)= 0, n(2) = 690, n(3)= 2500 Project B: n(0) = -800, n(1)= 1150, n(2) = 40, n(3)= -770 For a MARR of 23%, determine the IRR on the incremental investment and then state which alternative to recommend?

Answer

25