Buy Coastal, Inc has identified the following two mutually exclusive projects:

Year, Cash flow (A), Cash flow (B)

0, -29,000, -29,000

1, 14,400, 4,300

2, 12,300, 9,800

3, 9,200, 15,200

4, 5,100, 16,800

If the required return is 11%, which project will the company choose :

A) if it applies the NPV decision rule?

B) if it applies the IRR rule?

A) based on NPV decision rule, PROJECT A should be accepted

B)based on IRR decision rule, PROJECT A should be accepted

A) based on NPV decision rule, PROJECT B should be accepted

B)based on IRR decision rule, PROJECT B should be accepted

A) based on NPV decision rule, PROJECT B should be accepted

B)based on IRR decision rule, PROJECT A should be accepted

A) based on NPV decision rule, PROJECT A should be accepted

B)based on IRR decision rule, PROJECT B should be accepted