Drop Down One Options: A correct or An Incorrect

Drop Down Two Options: The Same or Different

Your boss hands you the following information about two mutually exclusive projects. She adds the following: "Our discount rate is 10% and both projects have IRRs over 20%. Unfortunately, we are unable to implement both, so we will go with project A since it has the highest IRR of the two." How would you respond? Give a supporting numerical analysis. Projects Cost of Capital IRR Initial Cash Flow Cash Flow in One Year A 10% 580% - $3000 $20,400 B 10% 22% - $160,000 $195,200 decision because the NPV of project A is $ and the NPV of project B is $. This means that project V has the higher NPV, which results in projects being selected by Ranking the projects by IRR would lead to the NPV and IRR rules. (Round to the nearest dollar as needed.)