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> Question 8 0.74 pts Which statement is incorrect? When cash flow of project A...

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> Question 8 0.74 pts Which statement is incorrect? When cash flow of project A has opposite direction of CF of project B, NPV and IRR tend to give conflicting ranks, From the above graph, we should pick project B. See the table above. Among these three projects below, you should pick project B. When the scale of cash flow of projects A and B are different, NPV and IRR tend to give conflicting ranks. Net Present Value Profile 50,000 40,000 30.000 Net Present Value (5) 20,000 NPVA NPV-B 10,000 0 O 2 - 10,000 4 6 8 10 12 14 16 Discount Rates (%) A $20,000 Projects B $31,500 3.2 years $10,793 17.33% $32,500 Cash inflow (years 1-5) Payback NPV IRR 3 years 3.4 years $10,345 19.86% $4,310 14.59%

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