Question: Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 11% A 36,500 26,200 26,200 +$8,368 B 56,500

Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 11% A 36,500 26,200 26,200 +$8,368 B 56,500 39,500 39,500 +11,145 a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Which project does the IRR rule suggest is best? Project A Project B c. Which project is really best?

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