Project Water Has an Initial Cost of $598,900 and Projected

Multiple Choice

Project Water has an initial cost of $598,900 and projected cash flows of $302,000,$264,000,and $250,000 for Years 1 to 3,respectively.Project Aqua has an initial cost of $512,200 and projected cash flows of $290,000,$214,000,and $220,000 for Years 1 to 3,respectively.What is the incremental IRR_A-B of these two mutually exclusive projects?

A) 8) 67%
B) 6) 93%
C) 2) 75%
D) 11.06%
E) 4) 37%