Compute the npv for each project and compute the


For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision.

         Project    Initial Investment    Year 1 Cash Flow  

            A             500,000             125,000              

            B             500,000             120,00

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