Two projects being considered are mutually exclusive and have the following projected 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.	a. Project B because it has the higher NPV.
	B.	b. Project B because it has the higher IRR.
	C.	c. Project A because it has the higher NPV.
	D.	d. Project A because it has the higher IRR.
	E.	e. Neither, because both have IRRs less than the cost of capital.