projects a and b are mutually exclusive and have normal cash flows?
Projects A and B are mutually exclusive and have normal cash flows. Project A has an IRR of 15% and B's IRR is 20%. The company's WACC is 12%, and at that rate Project A has the higher NPV. ... Assuming the timing pattern of the two projects' cash flows is the same, Project B probably has a higher cost (and larger scale).