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You are considering two independent projects with the following cash flows. The required return for...

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Finance

You are considering two independent projects with the following cash flows. The required return for both projects is 12 %. Given this information, which one of the following statements is correct? Year Project A Project B 0 -$675,000 -$160,000 1 297,000 75,000 2 389,000 75,000 3 184,000 85,000 a. You should accept project A because it has the higher NPV and reject project B. b. You should accept project B because it has the higher NPV and reject project A. c. You should accept project A since it has the higher IRR and reject project B because you cannot accept both projects. d. You should accept project B because it has the higher IRR and reject project A.

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