You are going to choose between two investments. Both cost $50,000, but investment A pays

$25,000 a year for 3 years while investment B pays $20,000 a year for 4 years. If your required

return is 12%, which should you choose?

Select one:

a. A because its IRR exceeds 12%.

b. B because it has a higher NPV.

c. B because its IRR exceeds 12%

d. A because it has a higher IRR.