Project A and Project B are mutually exclusive and have the following expected cas flows:

t=0, A=-120,000$, B=-150,000$

t=1, A=30,000$, B=40,000$

t=2, A=20,000$, B=20,000$

t=3, A=40,000$, B=50,000$

t=4, A=70,000$, B=85,000$

Which of the fowling statements is correct?

A)Select Project B if cost of capital for the firm undergoing the project is 5%

B)Cannot tell from the provided information

C) Always select B because the IRR of Project B is higher than the IRR for Project A

D) Select A if cost of capital for the firm undergoing the project is 5%

E) Always select Project A because the IRR of Project A is higher than the IRR for Project B

Texas corporation has an effective annual WACC of 9.60%. It is financed with 40% debt and 60% equity. Texas effective annual cost of equity is 12.80% and its corporate tax rate is 40%. All debt issued by Texas is 25 year bond, paying coupon annually at a coupon rate of 8%. The bond has a face value of 1000$

What is the price of the Texas Bond?

A) 987.63

B)1076.74

C) 852.46

D) 1017.67

E) 1000