Question: For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and

For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision.
Project __________Initial Investment __________Year 1 Cash Flow
A.............................500,000.................................125,000
B.............................500,000.................................120,000
Question: What is the best way to select a project that has resource restrictions? Explain.

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