Two mutually exclusive projects offer the following cash flows at year 0 and 1, Project X: -240 (year 0) and 580 (year 1), Project Y: -10,060 (year 0) and 11,010 (year 1). Calculate an incremental IRR of doing project Y and on that basis decide which project is preferable if the appropriate hurdle rate for each project is 8%.

A. incremental IRR = 6.21% so that project Y should be done

B. incremental IRR = 6.52% so that project X should be done

C. incremental IRR = 6.21% so that project X should be done

D. incremental IRR = 5.03% so that project X should be done

E. incremental IRR = 6.52% so that project Y should be done