Question: The proposed project advocated by the profit center you manage has an NPV of $2,000,000 and an IRR of 12.

Please help answer below question in detail, with relevant analysis. 

Question:

The proposed project advocated by the profit center you manage has an NPV of $2,000,000 and an IRR of 12.5%, well above the hurdle rate. Your close friend and colleague, who runs another profit center, has a project with NPV of negative $300,000 and an IRR well below the hurdle rate. She asks you to include her value destroying project as part of your value creating project, because the project is important to her profit center and your project, with a high NPV, has plenty of room to absorb her project without lowering its NPV too much. Discuss your response to her request and explain your thinking.