You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $500 million. Investment A will generate a cash flow of $7,000 million in 15 years. Investment B will generate a cash flow of $1,500 million in 3 years.

a. Which investment has the higher IRR? b. Which investment has the higher NPV when the cost of capital is 8%? c. For what range of discount rates would you choose project A and for what range of discount rates would you choose project B?