Question: BB Lean has identified two mutually exclusive projects with the following cash flows. Year 0 1 2 3 4 5 Cash Flow Project A -52,000.00

BB Lean has identified two mutually exclusive projects with the following cash flows.

Year 0 1 2 3 4 5
Cash Flow Project A -52,000.00 20,000.00 17,000.00 14,000.00 12,000.00 7,000.00
Cash Flow Project B -52,000.00 6,000.00 17,000.00 16,000.00 17,000.00 22,000.00

The company requires a 12% rate of return from projects of this risk. What is the IRR of project B?

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