As a CFO, you received two proposals for projects, one from CMO (Chief Marketing Officer) and one from COO (Chief Operation Officer). The cash flow estimates andIRR are as follows (cash flows are in $ millions). The hurdle rate (discount rate) you use in your company is 10%.

a) If you could invest in only one project, which one would you invest in? What criteria would you use? Which measures would you not use?[6points]

Year 2 IRR 13% 14% Marketing Operations Year 0 -60 -52 Year 1 5 26 Year 3 45 -4 Year 5 8 10 26 Year 4 20 10 12