Consider two mutually exclusive projects A and B:
\multirow[b]{2}{*}{Project}\multicolumn{3}{|c|}{Cash Flows (dollars)} \multirow[b]{2}{*}{NPV at 10\%}
$C_0$ $C_1$ $C_2$
A-31,500 22,200 22,200 +\$ 7,029
B-51,500 34,500 34,500 +8,376
ACalculate the IRRs for A and B.
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.
ProjectIRR
A
B
BWhich project does the IRR rule suggest is best?
AProject A
BProject B
CWhich project is really best?
AProject A
BProject B
\multirow[b]{2}{*}{Project} | \multicolumn{3}{|c|}{Cash Flows (dollars)} | \multirow[b]{2}{*}{NPV at 10\%} | ||
| $C_0$ | $C_1$ | $C_2$ | ||
A | -31,500 | 22,200 | 22,200 | +\$ 7,029 |
B | -51,500 | 34,500 | 34,500 | +8,376 |
ACalculate the IRRs for A and B.
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.
Project | IRR |
A | |
B | |
BWhich project does the IRR rule suggest is best?
AProject A
BProject B
CWhich project is really best?
AProject A
BProject B