Question: Consider projects A and B: Calculate IRRs for A and B. Which project does the IRR rule suggest is best? Which project is really best?

Consider projects A and B:

Consider projects A and B:
Calculate IRRs for A and B.

Calculate IRRs for A and B. Which project does the IRR rule suggest is best? Which project is really best?

Cash Flows (dollars) C1 -30,000 21,000 21,000 +$6,446 -50,000 33,000 33,000 7,273 Project C2 NPV at 10%

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