Two projects being considered are mutually exclusive and have the following cash flows: Year Project A Project B 0 $50,000 $50,000 1 15,625 0 2 15,625 0 3 15,625 0 4 15,625 0 5 15,625 99,500 If the required rate of return on these projects is 10 percent, which would be chosen and why?

a. Project B because of higher NPV. b. Project A because of higher IRR. c. Project A because of higher NPV. d. Neither, because both have IRRs less than the cost of capital. e. Project B because of higher IRR.

Year	Project A	Project B
0	$50,000	$50,000
1	15,625	0
2	15,625	0
3	15,625	0
4	15,625	0
5	15,625	99,500