The Winston Co A)1394%; a
B)13

Multiple Choice

The Winston Co.is considering two mutually exclusive projects with the following cash flows.The incremental IRR is _____ and if the required rate is higher than the crossover rate then project _____ should be accepted. $\begin{array}{|l|l|l|}\hline \text { Year } & \text { Project A } &Project B\\\hline 0 & £ 75,000 &-£ 60,000 \\\hline 1 & £ 30,000& £ 25,000 \\\hline 2 & £ 35,000& £ 30,000 \\\hline 3 & £35,000& £ 25,000 \\\hline\end{array}$

A) 13.94%; A
B) 13.94%; B
C) 15.44%; A
D) 15.44%; B
E) 15.86%; A