Use the information in the table and graph to answer the question.

	Cash Flow
Year	Project 1	Project 2
0	-$22	-$47
1	$9	$20
2	$12	$20
3	$11	$25

If the WACC for this firm is 16%, should the firm choose project 1 or project 2?

Project 1 because it has a higher NPV.

Project 2 because it has a higher NPV

Project 2 because it has a higher IRR

Project 1 because it has a higher IRR

SaveSaveSaveSave

$ NPV WACC $0 Project 1 Project 2