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A firm is considering investing in the following two mutually exclusive projects. NPV IRR Project 1 $5,000 20% Project 2 $6,000 10% Which of the

A firm is considering investing in the following two mutually exclusive projects.

NPV

IRR

Project 1

$5,000

20%

Project 2

$6,000

10%

Which of the following statements is correct?

Select one:

a. The firm should invest in both projects.

b. The firm should invest in Project 1.

c. The firm should invest in Project 2.

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