Task: NPV/IRR. Consider projects A and B.
Cash Flows, Dollars
Project C0 C1 C2 NPV at 10%
A -30,000 21,000 21,000 +$6,446
B -50,000 33,000 33,000 + 7,273
Calculate IRRs for A and B. Which project does the IRR rule suggest is best? Which project is really best?