A individual is trying to decide whether to use internal rate of return (IRR) or net present value (NPR) to
choose between two different projects. Project A has an NPV of $30,000 and an IRR or 10%, while Project B
has an NPV of $32,000 and an IRR of 9%. Project B's cash flows are spread out evenly over the life of the project,
while Project A's cash flows are all receive at the end of the project.
Which project should the individual choose and why?
Project B because the NPV assumes the immediate cash flows are invested at the IRR
Project A because the IRR assumes the cash flows are invested at the discount rate.
Project B because the NPV assumes the cash flows are invested at the discount rate
Project A because the IRR assumes the immeidate cash flows are invested at the IRR