Question: Consider projects A and B: Cash Flows (dollars) Project C 0 C 1 C 2 NPV at 12% A 34,000 24,200 24,200 + $6,899.23 B

Consider projects A and B:

Cash Flows (dollars)
Project C0 C1 C2 NPV at 12%
A 34,000 24,200 24,200 + $6,899.23
B 54,000 37,000 37,000 + 8,531.89

a.

Calculate IRRs for A and B. (Do not round intermediate calculations. Round your answers 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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