Given the cash flows for the following 2 projects, which of the following is true assuming a discount rate of 7%?

Project A: Investment: $1,000, Cash flows for 3 years: $250, $600, $700

Project B: Investment: $1,200, Cash flows for 3 years: $400, $650, $950

Group of answer choices

Project A has a higher NPV and a higher IRR

Project B has a higher NPV and a higher IRR

The company should not invest in either because both are negative NPV investments

The company can invest in any of these projects because they have the same investment amounts and yield the same total returns over the 3 years.

Project A has a higher NPV but a lower IRR