Problem
You must choose between three investment opportunities, as shown below which all operate over an eight year contract. Your investment company needs a MARR of 6%.
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Opportunity A
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Opportunity B
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Opportunity C
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Amount of Investment
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$50,300
|
$125,500
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$43,600
|
|
Yearly Income
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$6,900
|
$20,800
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$7,650
|
|
IRR
|
|
|
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One of the above individual, IRRs will not meet the MARR. What is the incremental IRR between the two remaining opportunities?