Global Enterprises is considering two new projects, Project C and Project D.

Project Cash Flows and IRR:

Project	C0 ($ thousands)	C1 ($ thousands)	C2 ($ thousands)	IRR (%)
C	-90	40	50	22.00
D	-100	55	45	20.00

The discount rate is 12%.

Requirements:

1. Illustrate why relying solely on IRR can be problematic.
2. Compute the NPV for both projects.
3. Recommend which project should be accepted based on NPV.
4. Identify any potential risks associated with each project.