Consider the following projects being considered by Preston Products:

Project A: Costs $270,000 and offers eight annual net cash inflows of $52,000. Preston Products requires an annual return of 12% on investments of this nature.
	Project B: Costs $375,000 and offers 9 annual net cash inflows of $75,000. Preston Products demands an annual return of 10% on investments of this nature.

The IRR for each project is:

Project

A:

10 - 12%

9 - 10%

8 - 9%

Project

B:

12 - 14%

10 - 12%

7 - 8%