You Are Considering Two Independent Projects with the Following Cash

Multiple Choice

You are considering two independent projects with the following cash flows.The required return for both projects is 10%.Given this information, which one of the following statements is correct? $\begin{array}{lll}\underline{\text { Year} } & \underline{\text { Project A }} &\underline{ \text { Project B }} \\ 0 & -\$ 950,000 & -\$ 125,000 \\1 & \$ 330,000 & \$ 55,000 \\2 & \$ 400,000 & \$ 50,000 \\3 & \$ 450,000 & \$ 50,000\end{array}$

A) You should accept project B since it has the higher IRR and reject project A because you can not accept both projects.
B) You should accept project A because it has the lower NPV and reject project B.
C) You should accept project A because it has the higher NPV and you can not accept both projects.
D) You should accept project B because it has the higher IRR and reject project A.
E) You should accept both projects if the funds are available to do so since both NPV's are > 0.