Question: Consider projects A and B: Cash Flows (dollars) Project C 0 C 1 C 2 NPV at 10% A 36,000 25,800 25,800 +$8,777 B 56,000

Consider projects A and B:

Cash Flows (dollars)
Project C0 C1 C2 NPV at 10%
A 36,000 25,800 25,800 +$8,777
B 56,000 39,000 39,000 +11,686

a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Project IRR
A %
B %

b. Which project does the IRR rule suggest is best?

Project A

Project B

c. Which project is really best?

Project A

Project B

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