Question: Use the information in the table and graph to answer the question. Cash Flow Year Project 1 Project 2 0 -$22 -$47 1 $9 $20

Use the information in the table and graph to answer the question.

Cash Flow
Year Project 1 Project 2
0 -$22 -$47
1 $9 $20
2 $12 $20
3 $11 $25

Use the information in the table and graph to answer the question.

If the WACC for this firm is 16%, should the firm choose project 1 or project 2?

Project 1 because it has a higher NPV.
Project 2 because it has a higher NPV
Project 2 because it has a higher IRR
Project 1 because it has a higher IRR

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$ NPV WACC $0 Project 1 Project 2

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