Two projects being considered are mutually exclusive and have the following cash flows:

Year	Project A	Project B
0	$50,000	$50,000
1	15,625	0
2	15,625	0
3	15,625	0
4	15,625	0
5	1,562	89,500

If the required rate of return on these projects is 13 percent, which would be chosen and why?

	a.	Project B because of higher NPV.
	b.	Project B because of higher IRR.
	c.	Project A because of higher NPV.
	d.	Project A because of higher IRR.
	e.	Neither, because the cost of capital is too high.