Question $4$

You have $\backslash (\backslash$$ $1\backslash$mathrm$\{$M$\}\backslash )$ dollars. There are two projects. Each requires an upfront investment of $\backslash (\backslash$$ $1\backslash$mathrm$\{$M$\}\backslash ),$ then generates positive cash flows every year after that. Project A has an NPV of $\backslash (\backslash$$ $5\backslash$mathrm$\{$M$\}\backslash ),$ an IRR of $\backslash (10\backslash \%\backslash ).$ Project B has an NPV of $\backslash (\backslash$$ $3\backslash$mathrm$\{$M$\}\backslash ),$ an IRR of $\backslash (15\backslash \%\backslash ).$ Which project should get funding? Explain why. If your answer depends on specific assumptions, state your assumptions.