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?