Question: 5. You are considering two independent projects. The required return for both projects is 13 percent. Project A has an initial cost of $145,000 and

5. You are considering two independent projects. The required return for both projects is 13 percent. Project A has an initial cost of $145,000 and cash inflows of $62,000, $53,000, and $70,000 for Years 1 to 3, respectively. Project B has an initial cost of $95,000 and cash inflows of $40,000, $44,000, and $35,000 for Years 1 to 3, respectively. Given this information, which one of the following statements is correct based on the NPV and IRR methods of analysis? AYou should accept both projects. BYou should accept Project A and reject Project B CYou should accept Project B and reject Project A. DNPV indicates accept Project A while IRR indicates accepting Project B. EYou should reject both projects.

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