The CFO of Bright Future Inc. is evaluating two potential projects, Project A and Project B. The cash flows and IRR are as follows:

Project	C0 (thousands $)	C1 (thousands $)	C2 (thousands $)	IRR (%)
A	-35	20	25	22.56
B	-50	30	40	24.12

The opportunity cost of capital is 14%.

Requirements: a) Explain why the higher IRR of Project B might be misleading. b) Show the CFO how to properly use the IRR rule to decide between the projects. c) Calculate the NPV for both projects. d) Recommend which project should be chosen based on NPV.