Consider the two mutually exclusive investment projects


Consider the two mutually exclusive investment projects given in the table below for which MARR18?%. On the basis of the IRR? criterion, which project would be selected under an infinite planning horizon with project repeatability? likely?

n   Project A   Project B

0   -$5,000 -$10,500

1   3,500 9,000

2   4,000 9,000

3   4,000 ____

IRR   54.95   44.88

The rate of return on the incremental investment is ___?

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Financial Management: Consider the two mutually exclusive investment projects
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