Question: Question 2 (1 point) A and B are mutually exclusive projects. The required rate of return is 12%. The cutoff period is 2.5 years. If

Question 2 (1 point) A and B are mutually exclusive projects. The required rate of return is 12%. The cutoff period is 2.5 years. If the company applies IRR decision, which project should be recommended? Year 0 1 2 3 Cash Flow (A) -$85,000 $32,400 $40,200 $36,600 Cash Flow (B) -$58,000 $27,800 $24,200 $19,800 Project A because it has IRR of 13.06% Project A because it has IRR of 13.35% Project B because it has IRR of 12.92% Project B because it has IRR of 12.22%

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