question 5 and 6

Question 5 (10 points) If IRR and NPV yield different accept/reject decisions, then one should choose to accept or reject the project based on_.._. IRR the payback period NPV Both IRR and NPV None of the above Question 6 (10 points) A firm is considering adding a new type of soft drink to its existing line of drinks. Which of the following should not be included in calculating incremental cash flows? The firm expects sales of the new product to be $5,000,000 per year. Last month, the firm allocated $200,000 per year in order to pay for the rent of the new headquarters office in the country The firm must pay $3,000,000 for equipment to produce the new drink. The firm expects sales of existing drinks to decrease by $500,000 per year because current customers will switch to the new drink. The property on which the plant will be built has a market value of $10,000,000