Question: Time: 0 1 2 3 Investment A - $ 1 million $ 3 0 0 , 0 0 0 $ 4 0 0 , 0

Time: 0123
Investment A -$1 million $300,000 $400,000 $500,000
Investment B -$1 million $500,000 $400,000 $300,000
An investor is considering the two investments shown above. Her cost of capital is 8%. Which of the following statements about these investments is true?
Group of answer choices
A The investor should take investment A since it has a greater NPV
B The investor should take investment A because it has a greater IRR
C The investor should take investment B since it has a greater NPV
D The investor should take investment B because it has a greater IRR

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