Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 10%. The expected Free Cash Flows of the projects are as follows: Period Annual Cash Flows Project "A" Annual Cash Flows Project "B" ($20,000) ($20,000) 4,000 11,000 6,000 7,000 8,000 6,000 10,000 1,000 Compute the Internal Rate of Return of Project "A". a. 10.01% b. 11.23% O c. 11.93% O d. 12.50% O e. 12.83% QUESTION 30 The Internal Rate of Return of Project B is 12.96%. If Projects "A" and "B" are independent, considering only at the IRR method, which project(s) should Big Company proceed with? O a. Project "A" should be chosen because its IRR is lower than Project "B" indicating a more efficient use of capital. Project "B" should be chosen because the IRR is higher than the IRR of Project "A" indicating that Project "B" has a higher ob.return. Both Projects should be chosen because both projects have IRR'S > WACC indicating that both projects have acceptable returns. Neither project should be chosen because both projects have IRR's > WACC, indicating that the costs of both projects exceed the initial investment