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%.

b) Just before you sent an email to approve the marketing project,you saw an email fromthe CTO (Chief Technology Officer) who proposes aproject with the following cash flows and IRR. Your budget constraint is $60 million. What would you do? [5points]

IRR Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 13% -60 5 10 45 20 8 Marketing Operations 14% -52 26 26 -4 10 12 Year 0 Year 3 Year 4 IRR 25% Year 1 5 Year 2 2 Year 5 0 Tech Project -8 3 3