25) You are considering two independent projects with the same discount rate of 12 percent. Project A costs $250,700 and has after-tax cash flows of $85,900, $106,400, and $129,800 for Years 1 to 3, respectively. Project B costs $125,000, and has after-tax cash flows of $55,000 a year for Years 1 to 3. You have sufficient funds to finance any decision you make. Which project or projects, if any, should you accept and why?

Project A; because it has the larger NPV

Both projects; because their NPVs are both positive

Neither project; because their NPVs are less than their initial costs

Project B; because its IRR exceeds the discount rate