The Walk-Up Window Is Considering Two Mutually Exclusive Projects

Multiple Choice

The Walk-Up Window is considering two mutually exclusive projects.Project A has an initial cost of $64,230 and annual cash flows of $25,200 for three years.Project B has an initial cost of $45,400 and annual cash flows of $21,400,$21,900,and $10,200 for Years 1 to 3,respectively.What is the incremental IRR_A-B? Which project should be accepted if the discount rate is 9 percent? Which project should be accepted if the discount rate is 6 percent?

A) 6.65%; Project A; Project A
B) 6.65%; Project B; Project A
C) 7.21%; Project A; Project B
D) 7.21%; Project B: Project A
E) 6.65%; Project A; Project B