Question: Zayas, LLC, has identified the following two mutually exclusive projects: Project A Project B CF0 -100000 -90000 CF1 42000 40000 CF2 30000 23000 CF3 27000

Zayas, LLC, has identified the following two mutually exclusive projects: Project A Project B CF0 -100000 -90000 CF1 42000 40000 CF2 30000 23000 CF3 27000 27000 CF4 22000 26000 If you apply the IRR decision rule, which project should the company accept?

Project A, as IRR A< IRR B

Project B, as IRR B> IRR A

Project B, as IRR B< IRR A

Project A, as IRR A> IRR B

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