Dee-dee Ltd is considering investing in two competing projects: Gee-gee and Bee-bee. Gee-gee has a net present value (NPV) of R16 500 and an internal rate of return (IRR) of 17%. Details of the estimated cash flows of Bee-bee are as follows:

Cash flows R000 Year 0 (200) Year 1 120 Year 2 60 Year 3 80

The business has a cost of capital of 10%.

Which one of the following combinations is correct concerning the NPV and IRR of the two projects? Project Gee-gee Bee-bee

A Higher NPV Higher IRR

B Higher NPV Lower IRR

C Lower NPV Higher IRR

D Lower NPV Lower IRR