What decision should be made regarding each of the following two independent projects if the appropriate cost of capital is 12%?

	Year 0	Year 1	IRR
Project A	-$15,000	$19,500	30%
Project B	+$15,000	-$19,500	30%

Select one:

a. Project B should be rejected since it represents a borrowing situation; therefore, the
IRR can be interpreted as the cost of borrowing, and this exceeds the cost of capital.

b. Both B and C are correct choices.

c. Project A should be undertaken since it represents an investment that offers a rate of return that exceeds the cost of capital.

d. Both projects should be undertaken since both projects offer a return that is greater than the cost of capital.