A Company Is Considering Two Mutually Exclusive Projects, a and B

Multiple Choice

A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $100, followed by cash flows of $95, $20 and $5. Project B requires an initial investment of $100, followed by cash flows of $0, $20 and $130. What is the IRR of the project that is best for the company's shareholders? The firm's cost of capital is 10%.

A) 15.24%
B) 15.96%
C) 16.17%
D) 15.42%