Consider two investments with the following sequences of cash
flows:
n Project A Project B
0 -$167,000 -$158,500
1 $38,500 $90,300
2 $47,400 $47,500
3 $59,300 $16,000
4 $29,900 $20,300
5 $57,300 $26,500
a) Compute the IRR for each investment.
b) At MARR = 9%, consider the acceptability of each project.
c) If A and B are mutually exclusive projects, which project would
you select on the basis of the rate of return on incremental
investment?