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A company has the following investment alternatives. The cash flows are shown below. Year          Project A         Project B...

A company has the following investment alternatives. The cash flows are shown below.

Year          Project A         Project B

0                -$2,000            -$2,000

1                   1,000                1,100

2                      800                   600

3                      900                   800

Which project(s) should the company select if the cost of capital is 13%?

Project B with an IRR of 15.69%

Project A with an IRR of 17.03%

Both project A and project B

Project B with an IRR of 12.93%

Project A with an IRR of 14.37%
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