What is the decision rule for choosing between projects A and B based on their IRR and NPV as described in the chapter?

The decision rule for choosing between projects A and B is to accept the project with the higher net present value (NPV). If both projects have positive NPVs, the one with the higher internal rate of return (IRR) may also be considered, but NPV is the primary criterion.

When evaluating mutually exclusive projects, the main decision rule is to select the project with the highest NPV, as it is the most reliable indicator of a project's potential to increase shareholder value. While IRR can provide additional insights, particularly when comparing projects with similar NPVs, it is secondary to the NPV rule, which consistently identifies the best investment.