The Camel Company is considering two mutually exclusive projects with the following cash flows.The incremental IRR is _____ and if the required rate is higher than the crossover rate then project _____ should be accepted.
A)13.94%;A
B)13.94%;B
C)15.44%;A
D)15.44%;B
E)15.86%;A

Question

The Camel Company is considering two mutually exclusive projects with the following cash flows.The incremental IRR is _____ and if the required rate is higher than the crossover rate then project _____ should be accepted. 
A)13.94%;A 
B)13.94%;B 
C)15.44%;A 
D)15.44%;B 
E)15.86%;A

Quizplus · Accepted Answer

The crossover rate is 13.94%.At a rate higher than the crossover rate,such as 15%,Project B will have the higher NPV and should be accepted.

The Camel Company Is Considering Two Mutually Exclusive Projects with the Following