Project a Has an IRR of 20 Percent While Project

Multiple Choice

Project A has an IRR of 20 percent while Project B has an IRR of 30 percent.Under which of the following situations might you be inclined to select Project A, assuming the projects to be mutually exclusive, lending projects?

A) Project A is more risky.
B) Project A requires a smaller initial investment.
C) Project A requires a larger initial investment.
D) Project A requires cash outflows in the final period.