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
E) Reject both projects
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