Consider projects A and B:

	Cash Flows (dollars)
Project	C0	C1	C2	NPV at 12%
A	31,000	21,800	21,800	+	$5,843
B	51,000	34,000	34,000	+	6,462

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