An analyst gathers the following information about two projects:

Project AProject BInitial outlay$50,000$70,000Annual cash inflows$21,000$35,000Life of the project4 years3 yearsWeighted average cost of capital10%10%

Which of the following statements isleast likelyto 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.