Question: Consider projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 12% A ?31,000 21,800 21,800 + $5,843.11 B ?51,000 34,000 34,000
Consider projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 12% A ?31,000 21,800 21,800 + $5,843.11 B ?51,000 34,000 34,000 + 6,461.73 -------------------------------------------------------------------------------- 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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