Project A has an IRR of 23.4%. Project B has an IRR of 33.1%. The firm's cost of capital is 18%. Now you are told that the cash flows of the two projects are as shown below. Which project is better, A or B, or can't you tell?

A) Project A is better because it has a larger NPV

B) Project B is better because it has a larger NPV

C) The projects have the same NPV Cannot tell

	Period 0	Period 1	Period 2	Period 4	IRR
Project A	-500	250	250	250	23.40%
Project B	-200	115	115	115	33.10%

Please show output of work in excel.

Finance Formula for NPV

NPV = PV (Cash inflows) - PV (Cash outflows)