Projects A and B are mutually Exclusive. The required return is 10%

Year	Cash Flow (a)	Cash Flow (B)
0	-20,000	-175,000
1	10,000	80,000
2	11,000	35,000
3	11,000	125,000

Which projects would be finally chosen and why?

a) Projects B because it has a positive and higher NPV

b) Both projects because they both have positive NPV

c) Projects B because it has a shorter payback period

d) Projects A because of high IRR

E) Project A because it has the higher IRR than required return