d below: Is it reasonable for Project \#2 to have a higher IRR but a lower NPV compared to Project \#1? Why might this be for not be) the case? Yes; because Project \#2 has higher risk, and therefore would have a higher discount rate compared to Project :1. Yes, because the payback period for Project #2 is longer. No; projects that have higher IRR should also have a higher NPV. No; because projects with higher risk should have higher NPV