We have two mutually exclusive projects A and B$.$ Both require initial costs of $$10,000$ and last for $4$ years. Project A has expected future cash flows of $$4,000,$ $$5,000,$ $$8,000$ and $$3,000,$ respectively. Project B has expected future cash flows of $$8,000,$ $$9,000,$ $$2,000$ and $-$$$3,000.$ If the required return for project A is $20\%$ and the required return for project B is $9\%,$ which project should we start?

Group of answer choices

Have no idea

Start both projects because both of them have positive NPVs

B$.$ Because its npv $4333\mathrm{.}66$ is higher than the NPV of A$,$ which is $2881\mathrm{.}94.$

A$.$ Because its NPV is $$5158\mathrm{.}19$ which is higher than the NPV of project B$,$ which is $$4333\mathrm{.}66$