Mr. Cyrus Clops, the president of Giant Enterprises, has to make a choice between two possible investments: Cash Flows ($thousands) Project CO C1 C2 IRR(%) A -400 +250 +300 23 B -200 +140 +179 36 The opportunity cost of capital is 5%. Mr. Clops is tempted to take B, which has the higher IRR. Why should not Mr. Clops base his decision on the IRR? When projects have different sizes (very different cash flows in year O), the IRR may give the wrong solution.In this case project B has a higher IRR than project A. However, project B is half the size of project A. The NPV gives the right choice. In this case the NPV of Project A is $110 > $96 the NPV of Project B When projects have different sizes (very different cash flows in year 0), the IRR may give the wrong solution.In this case project B has a higher IRR than project A. However, project B is half the size of project A. The NPV gives the right choice. In this case the NPV of Project A is $150 > $50 the NPV of Project B When projects have different sizes (very different cash flows in year 0), the IRR may give the wrong solution. In this case project B has a higher IRR than project A. However, project B is half the size of project A. The NPV gives the right choice. In this case the NPV of Project B is $180 > $60 the NPV of Project B When projects have different sizes (very different cash flows in ear O), the IRR may give the wrong solution.In this case project B has a higher IRR than project A. However, project B is half the size of project A. The NPV gives the right choice. In this case the NPV of Project B is $120 > $90 the NPV of Project A