1. A firm must choose between two mutually exclusive projects, A & B. Project A has an initial cost of $11000. Its projected net cash flows are $900, $2000, $3000, $4000, and $5000 at the end of years 1 through 5, respectively. Project B has an initial cost of $15000, and its projected net cash flows are $7000, $5000, $3000, $2000, and $1000 at the end of years 1 through 5, respectively. If the firms cost of capital is 6.00%:

		The NPV and the IRR criteria provide the same ranking of these two projects.
		The NPV criterion recommends Project A while the IRR criterion recommends Project B.
		The NPV criterion recommends Project B while the IRR criterion recommends Project A.
		The NPV and IRR criteria provide different rankings, but suggest that both projects should be taken.
		The NPV and IRR criteria provide the same ranking, but suggest that both projects should be taken.