A firm is considering two projects with the following cash flows and internal rates of return. If the firm's MARR is 15%, should it select project A, project B, or neither? It cannot select both the projects.
Project A
Year 0: -12
Year 1: 0
Year 2: 16
Project B
Year 0: X
Year 1: 0
Year 2: 12
The IRR for Project A is 12.32% and that of Project B is 16.83%.
What is the net present worth of the preferred project?