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Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project C 0 C 1 C 2 NPV at 12% A 31,000 21,800 21,800
Consider two mutually exclusive projects A and B:
Cash Flows (dollars) | ||||
Project | C0 | C1 | C2 | NPV at 12% |
A | 31,000 | 21,800 | 21,800 | +$5,843 |
B | 51,000 | 34,000 | 34,000 | +6,462 |
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. --------%
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