You Are Analyzing Two Mutually Exclusive Projects and Have Developed

Multiple Choice

You are analyzing two mutually exclusive projects and have developed the following information.What is the incremental IRR? $\begin{array}{cll}\underline{\text { Year }} & \begin{array}{l}\text { Project A } \\\underline{\text { Cash Flow }}\end{array} & \begin{array}{l}\text { Project B } \\\underline{\text { Cash Flow }}\end{array} \\ 0 &-\$ 84,500 &-\$76,900\\1 & \$ 29,000 & \$ 25,000 \\2 & \$ 40,000 & \$ 35,000 \\3 & \$ 27,000 & \$ 26,000\end{array}$

A) 11.11%
B) 13.01%
C) 14.91%
D) 16.75%
E) 17.90%