Project a Has an Initial Cost of $211,400 and Projected

Multiple Choice

Project A has an initial cost of $211,400 and projected cash flows of $46,200,$64,900,and $135,800 for Years 1 to 3,respectively.Project B has an initial cost of $187,900 and projected cash flows of $43,200,$59,700,and $125,600 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) 11.06%
D) −9.62%
E) 9.37%