You need to choose between two mutually exclusive investment…
You need to choose between two mutually exclusive investment projects for your renewable energy company: Project ‘SolarTech’ has a payback period of 2 years and a unique internal rate of return (IRR) of 9%; Project ‘WindGen’ has a net present value (NPV) of €5 million and an IRR of 14%. The market-required rate of return for a project with similar risk to ‘SolarTech’ is 12%. Which of the following statements is correct?