Each of two mutually exclusive projects involves an investment of $120,000. The firm's required rate of return is 11%. The estimated cash flows are as follows: Year Project A Cash Flow Project B Cash Flow 1 70,000 10,000 2 40,000 20,000 3 30,000 30,000 4 10,000 50,000 5 10,000 90,000 Which of the following statements is true concerning projects A and B? Group of answer choices

Due to time disparity, IRR indicates that project A should be accepted and NPV indicates that project B should be accepted.

Due to size disparity, IRR indicates that project B should be accepted and NPV indicates that project A should be accepted.

Due to time disparity, IRR indicates that project B should be accepted and NPVindicates that project A should be accepted.

Both NPV and IRR lead to the same investment decision.

Due to size disparity, IRR indicates that project A should be accepted and NPV indicates that project B should be accepted.