Question: Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project A Co -34,500 B -54,500 C 24,600 37,500 C2 24,600 37,500 NPV
Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project A Co -34,500 B -54,500 C 24,600 37,500 C2 24,600 37,500 NPV at 10% +$ 8,194 +10,583 a. Calculate IRRS for A and B. Note: 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? O Project A O Project B c. Which project is really best? Project A Project B
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