What is the rate of return on the incremental investment


Net cash flows

n Project A Project B

0 -125,000 -105,000

1 30,000 20,000

2 30,000 20,000

3 110,000 120,000

The rate of return for Project A is 13.5?%.

The rate of return for Project B is 17.7?%.

?(c) If A and B are mutually exclusive? projects, which project would you select based on the rate of return on incremental investment at

MARR=9?%?

What is the rate of return on the incremental investment ?

_____% (Round to one decimal? place.)

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Financial Management: What is the rate of return on the incremental investment
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