You are considering two independent projects with the following cash flows. The required return for both projects is 10%. Given this information, which one of the following statements is correct?

Year Project A Project B

0 -950,000 -125,000

1 330,000 55,000

2 400,000 50,000

3 450,000 50,000

		You should accept project B because it has the higher IRR and reject project A
		You should accept project A because it has the higher NPV and you can not accept both projects
		You should accept both projects if the funds are available to do so since both NPV's are > 0
		You should accept project A because it has the lower NPV and reject project B.