(Solution) - Consider the two mutually exclusive investment alternatives given in Table -(2025 Original AI-Free Solution)

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Consider the two mutually exclusive investment alternatives given in Table P7.41.
TABLE P7.4I

(a) Determine the IRR on the incremental investment in the amount of $5,000. (Assume that MARR = 10%.)
(b) If the firm's MARR is 10%, which alternative is the better choice?