Question: Consider two mutually exclusive projects A and B: Project A B Cash Flows (dollars) C1 C2 -33,000 23,400 23,400 -53,000 36,000 36,000 NPV at 10%
Consider two mutually exclusive projects A and B: Project A B Cash Flows (dollars) C1 C2 -33,000 23,400 23,400 -53,000 36,000 36,000 NPV at 10% +$7,612 +9,479 a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) IRR Project A B % % B b. Which project does the IRR rule suggest is best? O Project A O Project B c. Which project is really best? O Project A O Project B
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