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

Project AProject B

YearCash FlowCash Flow

0-$50,000-$50,000

115,6250

215,6250

315,6250

415,6250

515,62599,500

If the required rate of return on these projects is 10 percent, which would be chosen and why?

A.Project B because it has the higher NPV.

B.Project B because it has the higher IRR.

C.Project A because it has the higher NPV.

D.Project A because it has the higher IRR.

E.Neither, because both have IRRs less than the cost of capital.