A. If an investor is offered an opportunity to acquire an existing hotel for $10 millions and he calculates its future value to be $15 million in 10 years and its present value to be $9 million, he would likely do what :

Please explain your answer.

B. If an investor is offered an opportunity to invest $500,000 in a new restaurant and he calculates the present value of this investment to be $400,000 using his standard discount rate of 15%, the IRR on this potential investment would be :

Please explain your answer.