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Suppose High Yield Ltd., has 2 one-year projects with the following cash flows: Project A has a cash flow of -$100,000 in Year 0 and

Suppose High Yield Ltd., has 2 one-year projects with the following cash flows: Project A has a cash flow of

-$100,000 in Year 0 and $130,000 in Year 1. Project B has a cash flow of $100,000 in Year 0 and - $120,000 in Year 1. The discount rate is 10% and the projects are independent. Based on the IRR method, what is your recommendation?

Accept A

Accept B

Accept A and B

Reject A and B

Cannot be determined

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