Please explain briefly with examples and financial calculations. Second time posting the question.

NPV	A Project $34,670	B Project $1,500
IRR (required rate of return is 10%)	12.4%	10.6%
Payback Period	6 years	2 years

Please explain briefly:

• Why is Project A is clear best option, but not Project B? (financial calculations)
• What are the reasons that the financial manager should choose Project A?
• Under what circumstances would Project B be undertaken?

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(Most answers copy and paste as below:

Yes, the clear best option is Project Alpha

This is because Alpha has a higher NPV as well as a higher IRR. A higher NPV means that the project creates more value. A higher IRR means that the project has a higher rate of return on its investment (calculation)

Although the payback period for Alpha is higher, the other two measures of NPV and IRR are better for Alpha. Hence Alpha should be undertaken (calculation example)

The only circumstance in which Project Beta would be undertaken is if the payback period is the most important criterion for the project's investors or project A has a much higher cost than project B and the firm has not to have so much money for that Project"