You are trying to choose between two projects as you do not have sufficient funding to accept both projects. Each project costs $80,000. Project A pays $25,000 a year for 4 years and project B pays $20,000 a year for 5 years. If your required return is 8%, which project should you choose and why?

choose one

a) Project B; because it has a higher NPV

b) You should reject both projects.

c) Project A; because it pays back sooner

d) Project A; because it has a higher IRR