Project a Has an Initial Cost of $22,400 and Cash

Multiple Choice

Project A has an initial cost of $22,400 and cash flows of $7,100,$8,800,and $1,900 for Years 1 to 3,respectively.Project B has an initial cost of $37,200 and cash flows of $18,300,$17,900,and $2,700 for Years 1 to 3,respectively.What is the incremental IRR?

A) 15.67%
B) 13.54%
C) 15.91%
D) 23.38%
E) 27.31%