### NPV and IRR : explained

NPV/IRR. Consider projects A and B. Cash Flows, Dollars Project C0 C1 C2 NPV at 10% A -30,000 21,000 21,000 +$6,446 B -50,000 33,000 33,000 + 7,273 Calculate IRRs for A and B. Which project does the IRR rule suggest is best? Which project is really best?