Question: Suppose there are two mutually exclusive projects: A and B , whose cash flows are shown below. You, as a financial advisor, are asked to

Suppose there are two mutually exclusive projects: A and B

,

whose cash flows are shown below. You, as a financial advisor, are asked to advise on the investment decision. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. Suppose the required return on both projects are

10 % .

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table

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Year

, 0, 1, 2, 3, 4], [

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750,

250,

250,

250,

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Suppose there are two mutually exclusive projects: A and B, whose

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