Consider the following two mutually exclusive projects:

Year Cash flow (A) Cash flow (B)

0 -$317,000 -$26,500

1 27,700 $9,057

2 56,000 $10,536

3 55,000 $11,849

4 399,000 $13,814

The required return is 15 percent for both projects. Which one of the following statements related to these projects is correct?

	a.	Because both the IRR and the PI imply accepting Project B, that project should be accepted.
	b.	The IRR decision rule should be used as the basis for selecting the project in this situation.
	c.	Only NPV implies accepting Project A.
	d.	NPV, IRR, and PI all imply accepting Project A.