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Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 12%. Year Project

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Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 12%. Year Project A Cash Flow Project B Cash Flow 0 -$168,000 -$168,000 1 84,000 10,000 2 78,400 22.000 3 78,400 22,000 4 14,000 98,000 5 14.000 120,000 6 11,200 120,000 Which of the following statements best describes projects A and B? Due to time disparity. IRR indicates that A is best and NPV indicates that is best. Due to size disparity, IRR indicates that Ais best and NPV indicates that is best Both NPV and IRR lead to the same investment decision Due to size disparity. IRR indicates that is best and NPV indicates that A is besti Due to time disparity. IRR indicates that B is best and NPV indicates that Als best

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