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 assuming you have sufficient funds to invest in both if needed?

Year Project A Project B

0 -$900,000 -$125,000

1 $350,000 $ 55,000

2 $410,000 $ 80,000

3 $450,000 $ 80,000

Group of answer choices

You should accept both projects since they are both acceptable based on NPV

You should accept project A because it has the higher NPV and you can not accept both.

You should accept project A because it has the lower NPV and reject project B

You should accept project B because it has the higher IRR and reject project A

You should accept project B since it has the higher IRR and reject project A because you can not accept both projects.