Consider the following two mutually exclusive investments:

Investment

Period

A

B

$$(20,000)$

$(100,000)$

$1$

$$30,000$

$130,000$

Assuming a hurdle rate of $0\mathrm{.}10,$ which investment is to be preferred?

Internal rate of return $(\%)$

$50$

$30$Consider the following two mutually exclusive investments:

Assuming a hurdle rate of $0\mathrm{.}10,$ which investment is to be preferred?