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Two capital investments are under consideration. Excel has been used to calculate the internal rate of return for each, with the results below: A B

Two capital investments are under consideration. Excel has been used to calculate the internal rate of return for each, with the results below:

A B
1 -90,000 -90,000
2 32,000 29,000
3 25,000 26,000
4 26,000 24,000
5 24,000 24,000
6 27,000 19,000
7 15% 12%

If the company's hurdle rate is 14%, which of the following is true?

Group of answer choices

Only proposal A should be accepted.

Both proposal A and proposal B should be accepted.

Both proposal A and proposal B should be rejected.

Only proposal B should be accepted.

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