TNJ Corp. is considering purchasing one of two lawn mowers to reduce both labour and fuel costs: model Light or model Small. Both mowers cost $75. Model Small generates $90 of savings at the end of the first year and nothing at the end of 2 years. Model Light generates no savings at the end of the first year and $100 of savings at the end of 2 years. Graph the NPV Profiles of each model. When the cost of capital is equal to 11.11%, the NPV for both projects is $6.00. If TNJ's actual cost of capital is 9%, which of the following statements is correct. Choose both projects since both IRR's are greater than the cost of capital Choose project Light since at 9% cost of capital it will have the higher NPV Choose project Light since it has the higher IRR Choose project Small since it has the higher IRR