Question: Question 2 (5 marks) Suppose that you are considering two projects and only have the financial resources to choose one project. Project A has an

 Question 2 (5 marks) Suppose that you are considering two projects

Question 2 (5 marks) Suppose that you are considering two projects and only have the financial resources to choose one project. Project A has an internal rate of return (IRR) of 14.5% and Project B, an IRR of 23.5%. The cost of capital is 12%. Explain whether the IRR capital budgeting technique is suitable for you to determine your project selection

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