1. Are both methods (i.e. NPV and IRR) good in these situations?What would you do if you were the one in Sinning?s position?According to your opinion, which project is better for thiscompany?

Making the Decision Sinning estimates the cash flows of the two projects for the next 3 years as follows: Expected Cash flows associated with the two projects Time Project 2 0 1 2 3 Project 1 (20 million) 12 million 8 Million 5 million (30 Million) 5 million 15 million 20 million She was told by her manager that similar projects that the company has carried out before had a required rate of return of 12%, so she decided to use the same rate of return.