Question: You are evaluating the following two mutually exclusive projects: Project Year 0 Year 1 Year 2 A - $ 1 0 0 $ 1 0

You are evaluating the following two mutually exclusive projects:
Project Year 0 Year 1 Year 2
A -$100 $100 $200
B -$50 $55 $125
Both have 15% cost of capital. Using NPV profiles for Projects A and B, determine which project would be chosen under each of IRR rule and NPV rule. (Hint: Draw the NPV profiles.)
Group of answer choices
B under both IRR and NPV rules
A under IRR rule, and B under NPV rule
B under IRR rule, and A under NPV rule
A under both IRR and NPV rules
Cannot be determined.

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