Project a Costs $84,500 and Has Cash Flows of $32,300,$36,400,and

Multiple Choice

Project A costs $84,500 and has cash flows of $32,300,$36,400,and $30,000 for Years 1 to 3,respectively.Project B has an initial cost of $79,000 and has cash flows of $30,000,$36,000,and $29,000 for Years 1 to 3,respectively.What is the incremental IRR of these two mutually exclusive projects?

A) 18.11 percent
B) −13.01 percent
C) 14.91 percent
D) 16.75 percent
E) −20.37 percent