You are considering two mutually exclusive projects. Project A has cash flows of $125,000, $51,400, $52,900, and $63,300 for Years 0 to 3, respectively. Project B has cash flows of $85,000, $23,100, $28,200, and $69,800 for Years 0 to 3, respectively. Project A has a required return of 9 percent while Project B's required return is 11 percent. Should you accept or reject these mutually exclusive projects based on IRR analysis?

Multiple Choice

• Accept Project A and reject Project B

• Reject Project A and accept Project B

• Accept both projects

• Reject both projects

• You should not use IRR; use a different method of analysis.