Net Present Value Profile 50,000 40,000 30,000 Net Present Value (5) NPV-A 20,000 NPV-B 10,000 0 o N -10,000 4 6 8 10 12 14 16 Discount Rates (%) Projects B $31,500 Cash inflow (years 1-5) Payback NPV IRR A $20,000 3 years $10,345 19.86% 3.2 years $32,500 3.4 years $4,310 14.59% $10,793 17.33% Screen Shot 2021-05-12 at 9.51.41 AM.pdf Which statement is incorrect? From the above graph, we should pick project B. When the scale of cash flow of projects A and B are different, NPV and IRR tend to give conflicting ranks. When cash flow of project A has opposite direction of CF of project B, NPV and IRR tend to give conflicting ranks. See the table above. Among these three projects below, you should pick project B