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Given the cash flows for the following two projects, which of the following is true assuming a discount rate of 8%. Project A: Investment: $500,
Given the cash flows for the following two projects, which of the following is true assuming a discount rate of 8%. Project A: Investment: $500, Cash flows for 3 years: $300. $400, $500. Project B: Investment $750, Cash flows for 3 years: $300, $340, $400 Project A has a higher NPV and a higher IRR The company can invest in either project because they have the same investment amounts and yield the same total returns over the 3 years Project A has a higher NPV and a lower IRR O Project B ha a bither NPV and a hither IRR The company should not invest in either because both are negative NPV investments
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