Problem 8-13 NPV/IRR (LO4)

Consider projects A and B:

	Cash Flows (dollars)
Project	C0	C1	C2	NPV at 12%
A	35,500	25,400	25,400	+	$7,427.30
B	55,500	38,500	38,500	+	9,566.96

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