where 
 or using the above examples the company can calculate irr for each project as irr project a 0 5 000 1 700 1 irr 1 1 900 1 irr 2 1 600 1 irr 3 1 500 1 irr 4 700 1 irr 5irr project a 16 61 irr project b 0 2 000 400 1 irr 1 700 1 irr 2 500 1 irr 3 400 1 irr 4 300 1 irr 5irr project b 5 23 given that the company s cost of capital is 10 management should proceed with project a and reject project b 