Question: Two mutually exclusive projects have the following information: Project NPV IRR A -$3,122 13% B -$6,197 12% If the firm's WACC is 14% then the

Two mutually exclusive projects have the following information: Project NPV IRR A -$3,122 13% B -$6,197 12% If the firm's WACC is 14% then the firm should select: 1. Project B, because it has the higher NPV 2. Project A, because it has the higher IRR 3. Neither project 4. Project B, because it is the safer project (its IRR is the furthest below WACC)

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