Use the information for the question(s) below.
| Project A | Project B |
Time 0 | -10,000 | -10,000 |
Time 1 | 5,000 | 4,000 |
Time 2 | 4,000 | 3,000 |
Time 3 | 3,000 | 10,000 |
If WiseGuy Inc. uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest?
◦ Project A
◦ Project B
◦ Project A and Project B have the same ranking.
◦ Cannot calculate a payback period without a discount rate.