For discount factors use Exhibit 1281 and Exhibit 12B2. Skiba's cost of capital is 16% Required: percent. 2. Conceptual Connection: Explain why the project with the larger NPV is the correct choice for Skiba. NPV is an measure and reveals how much the value of the firm will change for each project. IRR glves a measure of Thus, since NPV revesis the total wealth change attributable to each project, it is preferred to the IRR measure. Exhibit 128.1 Present Value of a Single Amount" Exhibit 12E.2 Fresent Vave of an Annuby