You are trying to determine whether to accept project A or project B.These projects are mutually exclusive.As part of your analysis,you should compute the incremental IRR by determining:
A)the discount rate that equates the discounted payback periods for each project.
B)the net present value of each project using the internal rate of return as the discount rate.
C)the internal rate of return for the cash flows of each project.
D)the internal rate of return for the differences in the cash flows of the two projects.
E)the discount rate that makes the net present value of each project equal to 1.

Question

Quizplus · Accepted Answer

The incremental IRR is calculated by finding the IRR of the differences in cash flows between the two projects.

You Are Trying to Determine Whether to Accept Project a or Project