Use the table for the question(s)below.
Consider the following two projects with cash flows in $:
-An incremental IRR of Project B over Project A is closest to:
A)12.6%.
B)23.3%.
C)1.7%.
D)17.3%.

Question

Use the table for the question(s)below.
Consider the following two projects with cash flows in $: 
-An incremental IRR of Project B over Project A is closest to:
A)12.6%. 
B)23.3%. 
C)1.7%. 
D)17.3%.

Quizplus · Accepted Answer

The incremental IRR is the difference between the IRR of Project B and the IRR of Project A. The IRR of Project B is 25% and the IRR of Project A is 12.4%. Therefore, the incremental IRR is 25% - 12.4% = 12.6%.

Use the Table for the Question(s)below