Question: A firm will choose between two mutually exclusive projects. Project A costs $65,000 and pays out $105,000 in one year. Project B costs $25,000 and

A firm will choose between two mutually exclusive projects. Project A costs $65,000 and pays out $105,000 in one year. Project B costs $25,000 and pays out $55,000 in one year. Project A s IRR equals 62 percent and its NPV equals $34,057. Project B's IRR equals 120 percent and its NPV equals $26,887. Which project should the firm pick? Project A Both projects A and B. Project B Neither project

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