Consider projects A and B:

	Cash Flows (dollars)
Project	C0	C1	C2	NPV at 11%
A	32,000	22,600	22,600	+	$6,703.03
B	52,000	35,000	35,000	+	7,938.32

a.	Calculate IRRs for A and B. (Do not round intermediate calculations. Round your answers 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