Question: Consider projects A and B: Cash Flows (dollars) Project C 0 C 1 C 2 NPV at 10% A 33,000 23,400 23,400 + $7,611.57 B

Consider projects A and B:

Cash Flows (dollars)
Project C0 C1 C2 NPV at 10%
A 33,000 23,400 23,400 + $7,611.57
B 53,000 36,000 36,000 + 9,479.34

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?
multiple choice 1

  • Project A

  • Project B

c. Which project is really best?
multiple choice 2

  • Project A

  • Project B

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