Question: Consider projects A and B: Cash flows (dollars) Project C 0 C 1 C 2 GO to 11% A 32,000 22,600 22,600 + $6,703 B

Consider projects A and B:

Cash flows (dollars)

ProjectC 0C 1C 2GO to 11%
A−32,00022,60022,600+$6,703
B−52,00035,00035,000+7,938

a.

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

ProjectTIR
A%
B%

b.Which project does the IRR rule suggest is better?
Project A
Project B

C.Which project is really better?
Project A
Project B

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