A firm is considering the following independent investments: Project Investment NPV A 100,000 30,000 B 180,000 55,000 80,000 30,000 Rank the three projects by their profitability index from best to worst. OaC, B, A Ob.A,C,B OC. A, B, C Od.B, A, C Oe. C, A, B Bernhard Stroh is the Master Brewer at the Lion's Head Brewery. Bernhard has the approval to brew a new beer but can't decide between a wheat beer or a pale ale. Both beers require an initial investment of $1,000,000. The operating cash flows for each project are shown in the table. Lion's Head shareholders require a rate of return of 10%. The Wheat project has an IRR of 15.36% and the Ale project has an IRR of 15.89%. Which project should Bernhard choose (and why)? Year Wheat Ale 0 - 1,000,000 -1,000,000 1 200,000 900,000 2 1,100,000 300,000 a. Choose the Wheat project because its NPV is higher. Ob. Choose the Ale because its NPV is higher. OC. Choose either because they both have the same NPV. Od. Choose the Wheat project because it generates more operating cash flows. e. Choose the Ale project because its IRR is greater. the cost of capital. If a project's NPV is positive, then its IRR is a. the same as b. below O c. above