Consider the two mutually exclusive alternatives given in the table below. n 0 1 23 Net Cash Flow Project A1 - $12,000 5,000 5,000 5,000 BECKH Project A2 - $14,000 6,200 6,200 6,200 (a) Determine the IRR on the incremental investment in the amount of $2,000. The IRR on incremental investment is %. (Round to one decimal place.) 0

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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B9
Consider the two mutually exclusive alternatives given in the table below.
n
0123
Net Cash Flow
Project A1
- $12,000
5,000
5,000
5,000
BOCCH
Project A2
- $14,000
6,200
6,200
6,200
(a) Determine the IRR on the incremental investment in the amount of $2,000.
The IRR on incremental investment is %. (Round to one decimal place.)
Transcribed Image Text:Consider the two mutually exclusive alternatives given in the table below. n 0123 Net Cash Flow Project A1 - $12,000 5,000 5,000 5,000 BOCCH Project A2 - $14,000 6,200 6,200 6,200 (a) Determine the IRR on the incremental investment in the amount of $2,000. The IRR on incremental investment is %. (Round to one decimal place.)
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