Year EndProject AProject B

0($100)($100)

1$600

2$600

3$140

2. If these projects were independent (i.e. they did not compete with each other, hence you could accept both of them) which project(s) would you accept based on:

Payback _______IRR_______NPV_______

4.Hereafter assume these projects are mutually exclusive (you can choose only one of them).Which project would you accept based on 1) NPV? 2) IRR?Is there a conflict here?