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You can only take one of the following two projects. You have no capital constraints and the cost of capital is 1 0 % .

You can only take one of the following two projects. You have no capital constraints and the cost of capital is 10%. The information below for each project includes the IRR and NPV.
Project A: Costs 500 dollars today, pays 200 at t =1 years from now, pays 250 at t =2 years from today, and pays 300 at t =3 years from today. The IRR is 21.65%. The NPV is $113.82.
Project B: Costs 750 dollars today, pays 300 at t =1 years from now, pays 350 at t =2 years from today, and pays 400 at t =3 years from today. The IRR is 17.93%. The NPV is $112.51.
According to our class notes, which project should be the best choice?
a.Flip a coin
b.Choose A
c. Choose B

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