You are considering two mutually exclusive projects with the following after-tax cash-flows. When your company's cost of capital (WACC) is 8%, which statement is reasonable?

Year	Project A	Project B
0 (Initial)	-800	-800
1	400	0
2	300	0
3	200	0
4	100	1200
IRR (please verify)	12.16%	10.67%
NPV (please calculate)	?	?

• A.

  We should select Project A because it has a higher IRR than Project B.

• B.

  We should select Project A because it has a higher NPV than Project B.

• C.

  We should select Project B because it has a higher NPV than Project A.

• D.

  We should select Project B because it has a higher IRR than Project A. (That is, the IRRs in the table are incorrect.)

• E. We should reject both Project A and Project B because both projects have negative NPVs.