Consider projects A and B:

	Cash Flows (dollars)
Project	C0	C1	C2	NPV at 10%
A	34,500	24,600	24,600	+	$8,194
B	54,500	37,500	37,500	+	10,583

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