You are considering the following two projects and can take only one. Your cost of capital is 11.3 %. The cash flows for the two projects are as follows ($ million):

Project	Year 0	Year 1	Year 2	Year 3	Year 4
A	-100	24	29	41	49
B	-100	49	41	29	20

a. What is the IRR of each project?

b. What is the NPV of each project at your cost of capital?

c. At what cost of capital are you indifferent between the two projects?

d. What should you do?

A.You should invest in project B,as it has the higher NPV.

B.You should invest in project B, as it has the higher IRR.

C.You should invest in project A, as it has the higher NPV.

D.You should invest in project A, as it has the higher IRR.