A firm with a WACC of 10% is considering the following mutually exclusive projects:

                        0          1        2          3         4          5 

Project A -  $350     $55    $55     $55   $200    $200 

Project B -  $700    $300  $300   $65    $65      $65 

Which project would you recommend? Select the correct answer. 

I. Neither A or B, since each project's NPV 0. 

II. Both Projects A and B, since both projects have NPV's 0. 

III. Project A, since the NPVA NPVB. 

IV. Both Projects A and B, since both projects have IRR's 0. V. P.