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You are considering two independent projects with the same discount rate of 11 percent. Project...

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Finance

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You are considering two independent projects with the same discount rate of 11 percent. Project A costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. You have sufficient funds to finance any decision you make: Project B costs $284,700 and has cash flows of $75,900, $106,400, and $159,800 for Years 1 to 3, respectively. You have sufficient funds to finance any decision you make. Which project or projects, if either, should you accept and why? O a Project B; because it is the larger-sized project with a positive IRR ob. Both projects, because their NPVs are both positive and their IRRs exceed the discount rate OC Project B; because its IRR exceeds the discount rate Od Project B; because it has the larger NPV e Project A; because its IRR exceeds the discount rate

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