Question: There are two mutually exclusive projects, Project A and Project B. Project A has a net present value (NPV) of $3,000 and an internal rate

There are two mutually exclusive projects, Project A and Project B. Project A has a net present value (NPV) of $3,000 and an internal rate of return (IRR) of 12%. Project B has an NPV of $4,000 and an IRR of 10%. Based on the scenario, which of the following statements is true regarding the mutually exclusive projects?

a.Project B should be selected as Project B provides a lower IRR than project A.

b.Project A should be selected as Project A provides a higher IRR than project B.

c.Project A should be selected as Project A provides a lower NPV than project B.

d.Project B should be selected as Project B provides a higher NPV than project A.

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