Consider two mutually exclusive projects A and B:

Project Cash Flows $($dollars$)$ NPV at $10\%$

C$0$

C

$0$

C$1$

C

$1$

C$2$

C

$2$

A $31,50022,20022,200+$$ $7,029$

B $51,50034,50034,500+8,376$

Calculate IRRs for A and B$.$

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.

Which project does the IRR rule suggest is best?

multiple choice $1$

Project A

Project B

Which project is really best?

multiple choice $2$

Project A

Project B