Question: 5 . Consider projects A and B Cash Flows, $ Project C 0 C 1 C 2 NPV at 1 0 % A - 3

5. Consider projects A and B
Cash Flows, $
Project C0 C1 C2 NPV at 10%
A -30,00021,00021,000+6,446
B -50,00033,00033,000+7,273
Calculate IRRs for A and B. Which project does the IRR rule suggest is best? Which project is really the best?

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