Consider two investments A and B with the sequences of cash flows given in the table below. A) If A and B are mutually exclusive? projects, which project would you select based on the rate of return on incremental investment at MARRequals=6?%? The rate of return on the incremental investment is ?

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Consider two investments A and B with the sequences of cash flows given in the table below.

A) If A and B are mutually exclusive? projects, which project would you select based on the rate of return on incremental investment at

MARRequals=6?%?

The rate of return on the incremental investment is ?

n
0
1
2
3
Net Cash Flow
Project A
- $135,000
35,000
35,000
140,000
Project B
- $115,000
25,000
25,000
150,000
ㅁ
Transcribed Image Text:n 0 1 2 3 Net Cash Flow Project A - $135,000 35,000 35,000 140,000 Project B - $115,000 25,000 25,000 150,000 ㅁ
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