Assume that there are two mutually-exclusive projects, A and B. Project A has an NPV of $1,000 and an IRR of 15%. Project B has an NPV of $800 and an IRR of 20%. The company's cost of capital is 12%.

Which of the following is true?

a) It is not possible to use NPV or IRR to choose between two projects

b) Project A should be chosen because it has the higher NPV

c) Neither project should be chosen

d) Project B should be chosen because it has the higher IRR