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Time: Investment A: Investment B: 0 $1 million $1 million 1 $300,000 $500,000 2 $400,000 $400,000 3 $500,000 $300,000 An investor is considering the two

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Time: Investment A: Investment B: 0 $1 million $1 million 1 $300,000 $500,000 2 $400,000 $400,000 3 $500,000 $300,000 An investor is considering the two mutually exclusive investments shown above. Her cost of capital is 8%. Which of the following statements about the investor's choice is the most accurate? The investor should take investment B since it has a greater net present value (NPV). O The investor should take both investments since both have positive net present value (NPV). O The investor should take both investments since both have positive internal rate of return (IRR). O The investor should take investment A since it has a greater net present value (NPV). O The investor should take investment A since it has a greater internal rate of return (IRR)

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