Question: Consider the following cash flows on two projects. If the company uses the IRR rule to choose projects, which of the projects (Project A or

Consider the following cash flows on two projects. If the company uses the IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest?

Project A Project B
Time 0 -10,000 -5,000
Time 1 5,000 3,000
Time 2 5,000 3,000
Time 3 5,000 3,000

Project A

Project B

Both are the same

Neither (Can't compute)

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