Romboski, LLC, has identified the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0 −$ 59,000 −$ 59,000
1 35,000 22,100
2 29,000 26,100
3 20,500 31,000
4 13,800 25,100
(a)
What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answer as a percentage roundedto 2 decimal places (e.g., 32.16).)
(b) If you apply the IRR decision rule, which project should the company accept?