Which project does the irr rule suggest is best

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Reference no: EM132154593

Consider projects A and B:

Cash Flows (dollars)

Project C0 C1C2 NPV at 12%

A. 32,500 23,000 23,000 +$6,371

B. 52,500 35,500 35,500 +7,497

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 or
  • Project B?

c. Which project is really best?

  • Project A or
  • Project B?

Reference no: EM132154593

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