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You are considering two projects and can only choose one: the first has an IRR 15%, the other has a IRR 25%. Your WACC is

You are considering two projects and can only choose one: the first has an IRR 15%, the other has a IRR 25%.

Your WACC is 12%.

Which of the following would you select?

The project with an IRR of 25% is probably preferrable; however you should also conduct a DCF analysis.

Neither - both are value destroying.

The project with the 25% IRR.

The project with the 15% IRR.

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