Consider the following two mutually exclusive alternatives for reclaiming a deterioring inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.18%
a) If MARR is 18% per year, which alternative is better?
b) What is the IRR on the incremental cash flow [i.e., delta(Y-X)]?
c) If the MARR is 27.4% per year, Which alternative is better?
d) What is the simple payback period for each alternative?
e) Which alternative would you recommend?