Question: An investor is considering the two mutually exclusive projects shown as follows: Time 0 Time 1 Time 2 Time 3 Project 1 -2000 1500 1000

An investor is considering the two mutually exclusive projects shown as follows:

Time 0

Time 1

Time 2

Time 3

Project 1

-2000

1500

1000

1000

Project 2

-3000

2000

1500

1500

Which project should the investor invest in? Do NPV and IRR give the same results? Assume a 10% discount rate.

A.

Project 1, Yes
B.

Project 1, No
C.

Project 2, Yes
D.

Project 2, No

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