You are choosing between investing in a large scale vs. small scale project, which project you should undertake based incremental CF approach? The discount rate is 10%. Project Big Budget Small Budget Incremental CF -200 -700 ci 180 390 C2 100 520 Should you accept small or big budget project? Small project since NPV of incremental CF is - $48.52 is 0 Large project since NPV of incremental CF $38.02 is >0 Small project since NPV of incremental CF $38.02 is >0