Please help with Question 2

Question 2 In your role as a financial analyst, you are evaluating two mutually exclusive projects whose projected cash flows are shown below. Assume the appropriate WACC (discount rate) for each of these projects is 12%. Year: Project A Cash Flows: Project B Cash Flows: 0 1 -$1,200 $450 -$1,450 $395 2 $480 $590 $500 3 $440 4 $390 $650 2 points Which of the following statements is CORRECT? O a. The company should reject both projects due to negative Net Present Values (NPVs) at a discount rate of 12% O b. The company should aaccept both projects because at a WACC of 12% both project's Net Present Value (NPV) is positive. O c. The company should accept Project B because at a discount rate of 12%, Project B has a higher Net Present Value (NPV) than Project A. O d. The WACC (discount rate) at which these two project's Net Present Values (NPVs) equal (the crossover rate) is 12.26% e. The company should accept Project A because at a discount rate of 12%, Project A has a higher Net Present Value (NPV) than Project B. Saved