Evaluating two mutually exclusive investment projects

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Kristy is evaluating two mutually exclusive investment projects (he can choose only one project). He has calculated the net present value (NPV) and internal rate of return (IRR) for each project:

Project 1: NPV = $1800; IRR = 18%

Project 2: NPV = $823; IRR = 10%

Andrew should make which of the following recommendations concerning the two projects only based on NPV? .

a. project 1

b. project 2

c. Both

d. None

e. Not enough info

Andrew should make which of the following recommendations concerning the two projects only based on IRR?

a. project 1

b. project 2

c. Both

d. None

e. Not enough info

Reference no: EM132061191

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