Seinfeld Systems has a 13% WACC and is evaluating two projects for this years capital budget. After-tax cash flows, including depreciation, are as follows:

	Project A	Project B
Year	Cash Flow	Cash Flow
0	-$6,000	-$13,500
1	$2,200	$5,000
2	$2,200	$5,200
3	$2,400	$5,200
4	$2,400	$5,200
5	$2,400	$5,200

Calculate the NPV and IRR for both projects.

If the projects are mutually exclusive, which would you recommend?

Group of answer choices

Project A: NPV = $2,107.73, IRR = 26.32%, Project B: NPV = $4,612.61, IRR = 26.16%. Accept project A

Project A: NPV = $1,037.77, IRR = 18.44%, Project B: NPV = $2,023.88, IRR = 18.50%. Accept both

Project A: NPV = $2,107.73, IRR = 26.32%, Project B: NPV = $4,612.61, IRR = 26.16%. Accept project B

Project A: NPV = $2,107.73, IRR = 26.32%, Project B: NPV = $4,612.61, IRR = 26.16%. Accept Both

Project A: NPV = $1,037.77, IRR = 18.44%, Project B: NPV = $2,023.88, IRR = 18.50%. Accept project B