You are evaluating the following two mutually exclusive projects: Project Year 0 Year 1 Year 2 A -$100 $95 $140 B -$50 $50 $120 Both have 15% cost of capital. Using NPV profiles for Projects A and B,...

You are evaluating the following two mutually exclusive projects:

        Project           Year 0             Year 1           Year 2
             A               -$100                 $95             $140
             B                 -$50                 $50             $120

Both have 15% cost of capital.  Using NPV profiles for Projects A and B, determine which projectwould be chosen under each of IRR rule and NPV rule. (Hint: Draw the NPV profiles.)

Group of answer choices

A under IRR rule, and B under NPV rule

B under IRR rule, and A under NPV rule

A under both IRR and NPV rules

Cannot be determined.

B under both IRR and NPV rules