Two mutually exclusive projects have the following expected cash flows, net present values, and internal rates of return. If the appropriate discount rate is 15%, which project should be undertaken and why? Project A Project B Initial Investment -$10,000 -$5,000 Cash Flow (Year 1) $8,000 $7,000 Cash Flow (Year 2) $12,000 $5,000 NPV @ 15% $6,030 $4,868 IRR 56.5% 92.1% Project B since its IRR is higher than that of Project A Project B since its initial investment is returned in the first year and can then be invested in another project Project B since its total cash inflows are more than twice the cost of the project, whereas Project A's cash inflows are just twice the initial investment Project A since it has the higher net present value of the two projects