You are considering two mutually exclusive (you can do one or
the other – not both) projects with the following cash flows. Using
NPV and IRR, which project should you accept if the discount rate
is 5 percent? What if the discount rate is 10 percent?
Year
Project A
Project B
0
-$200,000
-$200,000
1
100,000
0
2
100,000
0
3
100,000
300,000