Question: Which mutually exclusive project would you select, if both require initial investment at $1,000 and your discount rate is 15%; Project A with three annual

Which mutually exclusive project would you select, if both require initial investment at $1,000 and your discount rate is 15%; Project A with three annual cash flows of $1,000, or Project B, with two years of zero cash flow followed by three years of $1,500 annually?

A. Project B because it has a faster Payback period

B. Project A because it has a higher IRR

C. Project A because it has a faster Payback period

D. Project B because it has a higher NPV

E. Project A because it has a higher NPV

F. Project B because it has a higher IRR

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