Project Water Has an Initial Cost of $639,700 and Projected

Multiple Choice

Project Water has an initial cost of $639,700 and projected cash flows of $288,000,$319,000,and $165,000 for Years 1 to 3,respectively.Project Aqua has an initial cost of $411,200 and projected cash flows of $186,000,$178,000,and $145,000 for Years 1 to 3,respectively.What is the incremental IRR of these two mutually exclusive projects?

A) 8.67%
B) 10.93%
C) 8.77%
D) 1.06%
E) 2.335