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22. A company is trying to decide between two independentprojects. Each project has a cost of capital of 12%. Project A hasan IRR of 11.4%. Project B has an IRR of 11.1%. Which projectshould the company choose if the goal of the firm is to maximizeshareholder wealth?

Question 22 options:

Project A Project B

Both projects should be chosen

Neither project should bechosen

This question cannot be answeredunless we know the NPV of each project.

21. A company is trying to decide between two mutually exclusiveprojects. Each project has a cost of capital of 18%. Project A hasan NPV of $215,000 and an IRR of 28.4%. Project B has an NPV of$154,000 and an IRR of $36.8%. Which project should the companychoose if the goal of the firm is to maximize shareholder wealth?Question 21 options: Project A

Project B

Both projects should be chosen

Neither project should be chosen