Two mutually exclusive projects have 3-year lives and a required rate of return of 10.5 percent.Project A costs $75,000 and has cash flows of $18,500,$42,900,and $28,600 for Years 1 to 3,respectively.Project B costs $72,000 and has cash flows of $22,000,$38,000,and $26,500 for Years 1 to 3,respectively.Using the IRR,which project,or projects,if either,should be accepted?
A)Accept both projects
B)Select either project as there is no significant difference between them
C)Accept Project A and reject Project B.
D)Accept Project B and reject Project A.
E)Reject both projects

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The Answer of Two mutually exclusive projects have 3-year lives and a required rate of return of 10.5 percent.Project A costs $75,000 and has cash flows of $18,500,$42,900,and $28,600 for Years 1 to 3,respectively.Project B costs $72,000 and has cash flows of $22,000,$38,000,and $26,500 for Years 1 to 3,respectively.Using the IRR,which project,or projects,if either,should be accepted?
A)Accept both projects
B)Select either project as there is no significant difference between them
C)Accept Project A and reject Project B.
D)Accept Project B and reject Project A.
E)Reject both projects

Two Mutually Exclusive Projects Have 3-Year Lives and a Required