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Project A has an NPV of $200K and an IRR of 30%. Project B has an NPV of $250K and an IRR of 20%. Both
Project A has an NPV of $200K and an IRR of 30%. Project B has an NPV of $250K and an IRR of 20%. Both projects require an investment of 100K. Which of the following statements is correct if you can choose only one project?
1. Project A is preferred over Project B
2. Project A has a higher profitability index than Project B
3. Project B is preferred over Project A
4. None of the other statements above is correct
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