Consider projects A and B:
Cash Flows (dollars)
ProjectC0C1C2NPV at 12%
A−40,000 29,000 29,000 +$9,011
B−60,000 43,000 43,000 +12,672
a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Project IRR A % B %
b. Which project does the IRR rule suggest is best? Project A Project B
c. Which project is really best? Project A Project B