Question: Internal Rate of Return Projects A and B have the following cash flows: a. If the cash flows from the projects are identical, which of

Internal Rate of Return Projects A and B have the following cash flows:

Internal Rate of Return Projects A and B have the


a. If the cash flows from the projects are identical, which of the two projects would have a higher IRR? Why?

b. If C1B = 2C1A, C2B = 2C2A, and C3B = 2C3A, then is IRRA = IRRB?

Year Project A Project B 0 1.000 $2,000 CIB C2B C3B CIA C2A C3A 2

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