Question: Project NPV IRR A -$156 3% B -$242 2% Two mutually exclusive projects have the above information. If the firms WACC is 10%, then which

Project

NPV

IRR

A

-$156

3%

B

-$242

2%

Two mutually exclusive projects have the above information. If the firms WACC is 10%, then which project (if any) should the firm select?

Project B, because it has a lower NPV and IRR

Neither project

Both projects

Project A, because it has a higher NPV and IRR

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