An analyst gathers the following information about two projects:

	Project A	Project B
Initial outlay	$50,000	$70,000
Annual cash inflows	$21,000	$35,000
Life of the project	4 years	3 years
Weighted average cost of capital	10%	10%

Which of the following statements is least likely to be true?

Question 10 options:

	Project B will be chosen if the IRR is used for decision making.
	Project B will be chosen if the projects are mutually exclusive.
	Project A will be chosen if the decision is made on the basis of higher profitability index.