A project manager must decide between two projects. Project A requires an initial investment of $100,000 with an expected return of $30,000 annually for four years. Conversely, Project B, matched in investment, is projected to return $50,000 in the first year, then $25,000 each following year. Considering equal risk and discount factors, which project is anticipated to have a more compelling rate of efficiency?
Neither project, as their IRR is equal.
Project A, with steady returns over time.
Project B, which generates higher returns earlier.
Both projects, due to identical overall monetary returns.