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

Ranking the projects by IRR would lead to decision because the NPV of project A is ?

$enter your response here

and the NPV of project B is ?

$enter your response here.

This means that project B A has the higher NPV, which results in different the same projects being selected by the NPV and IRR rules.

Projects	Cost of Capital	IRR	Initial Cash Flow	Cash Flow in One Year
A	10%	560%	$2000	$13,200
B	10%	21%	$150,000	$181,500