Correct based on the npv and irr methods of analysis

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You are considering two independent projects. The required return for both projects is 13 percent. Project A has an initial cost of $139,600 and cash inflows of $48,200, $54,600, and $68,700 for Years 1 to 3, respectively. Project B has an initial cost of $94,200 and cash inflows of $67,600 and $41,200 for Years 1 and 2, respectively. Given this information, which one of the following statements is correct based on the NPV and IRR methods of analysis? You should accept Project A and reject Project B. NPV indicates accept Project A while IRR indicates accepting Project B. You should accept Project B and reject Project A. You should accept both projects. You should reject both projects.

Reference no: EM131976181

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