Martin Industries uses the Internal Rate of Return method and requires a return of 11%. Martin is considering the following independent projects:

	Cash Flow for
Year	Project A	Project B
0	-$157,300	-$33,900
1	$74,000	$11,300
2	$87,000	$13,350
3	$46,000	$14,420

Required:

1. Using the Internal Rate of Return method, should Martin accept or reject Project A? Project B?
2. Why?

Answer rating: 100% (QA)

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