Madeline should not choose between the projects on the IRR basis as determined in Part A). The reason being, is that IRR is a relative measure, and it will rank projects offering best investment return higher regardless of the total dollar value added. NPV is the preferred technique, and to further analyze whether we should proceed with Project A or B, we should obtain the NPV (the preferred technique). Using Financial Calculator, the NPVs are below: Project A: $456.65 Project B: $325.14 So, based on NPV we would prefer Project A over Project B