You need to take one of the projects with the following cash flows: The cost of capital is 7%. Year 0 Year 1 IRR Project A Project B 10% 15% -500 550 -100 115 Please answer question I -2.What is the incremental IRR of two projects? А. 5%. В. 10%. С. 15%. D. 8.75%.

You need to take one of the projects with the following cash flows: The cost of capital is 7%. Year 0 Year 1 IRR Project A Project B 10% 15% -500 550 -100 115 Please answer question I -2.What is the incremental IRR of two projects? А. 5%. В. 10%. С. 15%. D. 8.75%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You need to take one of the projects with the following cash flows: The cost of capital is 7%.
Year 0
Year 1
IRR
Project A
Project B
10%
15%
-500
550
-100
115
Please answer question I -2.What is the incremental IRR of two projects?
А. 5%.
В. 10%.
С. 15%.
D. 8.75%.

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