A company prepares a chart with the net present value (NPV) profiles for two mutually exclusive projects with equal lives of five years. Project Jones and Project Smith have the same initial cash outflow and total undiscounted cash inflows, but 75% of the cash inflows for Project Jones occur in years 1 and 2, while 75% of the cash inflows for Project Smith occur in years 4 and 5. Which of the following statements is most accurate regarding these projects?

A.Project Smith has a higher internal rate of return than Project Jones.

B.There is a range of discount rates in which the optimal decision is to reject both projects.

C.There is a range of discount rates in which the company should choose Project Jones and a range in which it should choose Project Smith.