you can only take one of the following two projects. You have no capital constraints and the cost of capital is 10%. The information below for each project includes the IRR and NPV.

Project A: Costs 500 dollars today, pays 200 at t = 1 year from now, pays 250 at t = 2 years from today, and pays 300 at t = 3 years from today. The IRR is 21.65%. The NPV is $113.82.

Project B: Costs 750 dollars today, pays 300 at t = 1 year from now, pays 350 at t = 2 years from today, and pays 400 at t = 3 years from today. The IRR is 17.93%. The NPV is $112.51.

Required 

calculate which project should be the best choice?

Answer rating: 100% (QA)

To determine which project is the better choice we need to compare th... View the full answer