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Problem 6. Short Answers You have two projects available for investment: Project A has an IRR or 10.0% and Project B has an IRR of

Problem 6. Short Answers

You have two projects available for investment: Project A has an IRR or 10.0% and Project B has an IRR of 12%. Your opportunity cost of capital is 8.0%.

a. Given only the information above could you calculate the NPV of the projects?

b. Based only on the information above, which project, if any (you do not necessarily have to take any of the two projects if you believe you do not have the information you need, in which case please explain your decision) would you take? Make sure you provide the logic of your decision.

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