Question: Assume that there are two competing projects, A and B. Project A has a net present value of $1,000 and an internal rate of return

Assume that there are two competing projects, A and B. Project A has a net present value of $1,000 and an internal rate of return of 15 percent; Project B has an NPV of $800 and an IRR of 20 percent. Which of the following is true?
a. It is not possible to use NPVor IRR to choose between the two projects.
b. Project B should be chosen because it has a higher IRR.
c. Project A should be chosen because it has a higher NPV.
d. Neither project should be chosen.
e. None of the above.

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