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Calculate the incremental irr analysis

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Reference no: EM133128021

Question - Consider the following financial data for 2 mutually exclusive pharmaceutical projects:

N

Project A

Project B

0

($6,000)

($7,000)

1

$3,500

$4,000

2

$3,000

$3,500

3

$4,000

$4,500

With a MARR of 10% calculate the following:

a. Calculate the IRR for each project.

i. Use linear interpolation to solve the IRR for both projects

ii. Use the Excel IRR function to determine the IRR for both the projects and submit your spreadsheet electronically

b. Calculate the incremental IRR analysis. Using this, which project should be selected and why?

Reference no: EM133128021

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