Reject these projects based on IRR analysis

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Reference no: EM13879585

You are considering two mutually exclusive projects. Project A has cash flows of -$125,000, $51,400, $52,900, and $63,300 for years 0 to 3, respectively. Project B has cash flows of -$85,000, $23,100, $28,200, and $69,800 for years 0 to 3, respectively. Project A has a required return of 9 percent while Project B’s required return is 11 percent. Should you accept or reject these projects based on IRR analysis?

A) Accept Project A and reject Project B

B) Reject Project A and accept Project B

C) Accept both projects

D) Reject both projects

E) You should not use IRR; use a different method of analysis.

Reference no: EM13879585

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