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?

A because it pays back sooner.

A because its IRR exceeds $12\%.$

B because its IRR exceeds $12\%.$

A because it has a higher IRR.

$B$ because it has a higher NPV$.$