1. When do the NPV and the IRR hurdle investment decision rules give different recommendations? Which one of these rules should you use when they give different recommendations?
2. The table below shows the projected net cash flows (including reversion) for Property A and Property B. If both properties sell at fair market value for a cap rate (initial and terminal net cash yields) of 7%, then which of these two properties is perceived to be riskier by the market? Why? (show work).

Year	1	2	3	4	5	6	7	8	9	10
A	$                  1.0000	$           1.0000	$            1.0000	$            1.0000	$            1.0000	$            1.0000	$            1.0000	$            1.0000	$            1.0000	$         15.2857
B	$                  1.0000	$           1.0200	$            1.0404	$            1.0612	$            1.0824	$            1.1041	$            1.1262	$            1.1487	$            1.1717	$         18.6093