The rise of China investment given the Belt and Road Initiative (BRI) has largely benefited industries such as railways and construction for the member countries. Company ABC is operating in Malaysia and currently is considering acquiring ONE of the companies in the construction sector for future business expansion.

As the Chief Financial Officer (CFO) of Company ABC, you have shortlisted two construction companies listed on Bursa Malaysia. The cash flows over the next 10 years are projected as follows, with various tools (sensitivity, scenario and simulation analyses) employed to account for their uncertainty:

	Green Construction	Giant Construction
Year 0	-300,000	-200,000
Year 1	-200,000	-200,000
Year 2	800,000	700,000
Year 3	900,000	750,000
Year 4	800,000	-500,000
Year 5	-450,000	700,000
Year 6	500,000	750,000
Year 7	600,000	-450,000
Year 8	-500,000	700,000
Year 9	800,000	750,000
Year 10	750,000	700,000

Company ABC finances its long-term investments via common stock, preferred stock and debt. Using this financing mix, the weighted-average cost of capital (WACC) is 10%.

You are required to put forward your recommendation to the Board of Directors on the proposed acquisition. At present, Net Present Value (NPV) and Internal Rate of Return (IRR) are the standard selection criteria used by the company, but the Board is split on which capital budgeting method is the best.