Consider projects A and B:

	Cash Flows (dollars)
Project	C0	C1	C2	NPV at 10%
A	31,500	22,200	22,200	+	$7,029
B	51,500	34,500	34,500	+	8,376

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