Calculate irrs for two projects


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?

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Finance Basics: Calculate irrs for two projects
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