Question: Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment

Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment are given below for each option. Given that interet is 20%, find A and B. Which project you select? Year Project 1 ($) Project 2 ($) 0 -20000 -20450 1 18900 5227 B 4*B 3 7000 A IRR 0,22 0,24 2 Select one: O a. A=10000, B=10000, Select Project 1 O b. A=8000, B=9000, Select Project 1 O c. A=4300, B=6000, Select Project 1 O d. A=22000, B=8000, Select Project 2 O e. A=11600, B=2000, Select Project 2 O f. A=26000, B=1000, Select Project 2
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