Question: a. Calculate IRR's for A and B. b. Which project does the IRR rule suggest is best? Consider two mutually exclusive projects A and B:
a. Calculate IRR's for A and B.
b. Which project does the IRR rule suggest is best?
Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project Co C C NPV at 12% A -35,500 25,400 25,400 +$ 7,427 B -55,500 38,500 38,500 +9,567
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To calculate the Internal Rate of Return IRR for projects A and B we need to find the discount rate ... View full answer
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