Which project does the irr rule suggest is best which


Consider projects A and B:

Cash Flows (dollars)

Project      C0             C1               C2            NPV at 11%

A           −32,000        22,600         22,600        +$6,703

B          −52,000         35,000         35,000         +7,938

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?

c. Which project is really best?

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Financial Management: Which project does the irr rule suggest is best which
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