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AB Lean has identified two mutually exclusive projects with the following cash flows. Year 0 1 2 3 4 5 Cash Flow Project A -52,000.00

AB Lean has identified two mutually exclusive projects with the following cash flows.

Year 0 1 2 3 4 5
Cash Flow Project A -52,000.00 25,000.00 17,000.00 14,000.00 12,000.00 9,000.00
Cash Flow Project B -52,000.00 17,800.00 17,000.00 16,000.00 17,000.00 22,000.00

The company requires a 12.5% rate of return from projects of this risk. What is the IRR of project B?

a.

12.06%

b.

12.94%

c.

20.80%

d.

13.90%

e.

14.68%

f.

13.05%

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