Incremental cash flows for each period from doing project

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Reference no: EM131354132

Projects A and B both have an NPV of $42 at the opportunity cost of capital of 13 percent. Project A has an IRR of 14 percent and B has an IRR of 15 percent. What is the IRR of the incremental project (where “incremental project” is either the incremental cash flows for each period from doing Project A instead of Project B, or, equivalently, the difference between project A’s NPV and project B’s NPV)?

Reference no: EM131354132

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