Assume there are two projects with identical initial costs of $$1,000,000$ in a mutually exclusive scenario. The first is projected to offer a $10$ percent rate of return and an NPV of $$60,000.$ The second is projected to offer a $14$ percent rate of return but an NPV of $$80,000.$ A company is most likely going to

invest in neither because the initial cost is too high.

invest in the second project because it has a higher NPV$.$

invest in the first project because it has a higher rate of return.

pursue both because they have positive NPV$.$