Investment decision
The cash flows as the NPV and IRR for the two projects are shown below. The cash flows as well as the NPV and IRR for the two projects are shown below. The two projects are mutually exclusive. What is the appropriate investment decision?
A. Invest in both projects because both are profitable
B. Invest in Project 1 because it has the higher IRR
C. Invest in Project 2 because it has the higher NPV
D. Cannot be decided