Question 5: The company X has identified the following two mutually exclusive projects: 1. IRR of project A and project B is 26.5% and 23.3% respectively. Which project should the company accept? 2. If required rate of return 12 percent, what is the NPV for each project? Which project will the company choose if it applies the NPV decision rule? 3. What is the payback period for each project? Which project will the company choose if its decision based on the payback criteria? 4. Based on your answers from 1 to 3 , which project the company should choose finally and why