Consider the following information for projects K and W:
Project K: NPV = $1,500 IRR = 20%
Project W: NPV = $2,500 IRR = 15%
Assume Project K and Project W are mutually exclusive projects with a WACC = 10%. Which of the following is true?
1. Only project k should be entacted since it has the highest IRR
2. Neither project k or w should be enacted since both have a positive NPV
3. Only Project W should be enacted since it has the highest NPV