Q$8.(12$ points$)$ Consider two mutually exclusive projects. Project A has a total life of $3$ years with a cost of capital of $12\%.$ Project B has a total life of $3$ years with a cost of capital of $15\%.$

The expected cash flows of the projects are:

Year Project A Project B

$0-$$$3,000-$$$800$

$1-$$$2,000-$$$700$

$2$ $$4,000$ $$3,000$

$3$ $$5,000$ $$1,500$

An expert has concluded that "Given that these are mutually exclusive projects project B should be undertaken because it has a higher IRR than project A$".$

Do you agree with this decision? If so$,$ why; if not, why not?