Assume two projects: Project A and Project B. Project A has a higher NPV but Project B has a higher IRR. If only one project can be selected, which one should be chosen?

1. When NPV and IRR conflict, either project can be selected based on management preferences.
2. Project B because it has a higher IRR and IRR is a preferred measure when projects are mutually exclusive.
3. When NPV and IRR conflict, the Herfindahl score should be calculated to select the optimal project.
4. Project A because it has a higher NPV and NPV is a preferred measure when projects are mutually exclusive.