Time: Year 0 Investment A: -$1.5 million Investment B: -$1.3 million Year 1 Year 2 Year 3 Year 4 Year 5 Discount Rate 8% 7% $300,000 $300,000 $300,000 $500,000 $500,000 $500,000 $400,000 $300,000 $200,000 $100,000 An investor is considering the two investments shown above. Which of the following statements about these investments is true? 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). O The investor should take investment B since it has a greater net present value (NPV). O Neither investment should be taken since they both have a negative net present value (NPV).

An investor is considering the two investments shown above. Which of the following statements about these investments is true? The investor should take investment A since it has a greater net present value (NPV). The investor should take investment A since it has a greater internal rate of return (IRR). The investor should take investment B since it has a greater net present value (NPV). Neither investment should be taken since they both have a negative net present value (NPV)