Question: Consider projects A and B: Project A B Cash Flows (dollars) C1 C2 -32,500 23,000 23,000 -52,500 35,500 35,500 NPV at 12% + $6,371.17 +

 Consider projects A and B: Project A B Cash Flows (dollars)

Consider projects A and B: Project A B Cash Flows (dollars) C1 C2 -32,500 23,000 23,000 -52,500 35,500 35,500 NPV at 12% + $6,371.17 + 7,496.81 a. Calculate IRRs for A and B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) IRR Project 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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