Your boss hands you the following information about two mutually exclusive projects. She adds the following: "Our discount rate is 10% and both projects have IRRs over 20%. Unfortunately, we are unable to implement both, so we will go with project A since it has the highest IRR of the two." How would you respond? Give a supporting numerical analysis. IRR Projects A Cost of Capital 10% 560% Initial Cash Flow - $2000 - $150,000 Cash Flow in One Year $13,200 $181,500 B 10% 21% decision because the NPV of project A is $ and the NPV of project B is $ This means that project has the higher NPV, which results in projects being selected by Ranking the projects by IRR would lead to the NPV and IRR rules. Your boss hands you the following information about two mutually exclusive projects. She adds the following: "Our discount rate is 10% and both projects have IRRs over 20%. Unfortunately, we are unable to implement both, so we will go with project A since it has the highest IRR of the two." How would you respond? Give a supporting numerical analysis. IRR Projects A Cost of Capital 10% 560% Initial Cash Flow - $2000 - $150,000 Cash Flow in One Year $13,200 $181,500 B 10% 21% decision because the NPV of project A is $ and the NPV of project B is $ This means that project has the higher NPV, which results in projects being selected by Ranking the projects by IRR would lead to the NPV and IRR rules