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You are being proposed two projects. One from company A and from company B. The discount rate is 12%. The follow cash flows are in

You are being proposed two projects. One from company A and from company B. The discount rate is 12%. The follow cash flows are in millions. If you can only invest in one project, which one? Why?

IRR Year 0 Year 1 Year 2 Year 3 Year 4

Year 5

Company A 12% -50 5 10 15 12 8
Company B 13% -48 20 20 -5 10 12

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