Question: Question 7 (Mandatory) (1 point) Projects A and B are mutually exclusive. The required return is 10% Year Cash Flow (A) Cash Flow (B) 0

Question 7 (Mandatory) (1 point) 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 12,000 80,000 2 10,000 35,000 3 10,000 125,000 If you apply the IRR criterion, which investment will you choose? Why? A) Project A, because IRR is positive and higher B) Both projects A and B, because IRR is greater than 10%. OC) Project A, because IRR is greater than 10% and higher. D) Project B, because IRR is positive and higher. E) Project B, because IRR is greater than 10% and higher

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