Parkallen Inc. has identified the following two mutually exclusive projects:
Cash Flow
Cash Flow
Year
(A)
(B)
0
-$30,050
-$30,050
1
14,785
4,700
2
12,720
10,200
3
9,620
15,600
4
5,520
17,280
a-1. What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
IRR
Project A
Project B
%
%
a-2. Using the IRR decision rule, which project should the company accept?
O Project A
O Project B