Consider two projects, A and B. The present value (PV) of after-tax cash inflows for project A is $55,000, while the original investment outlay for this project is $50,000. Project B, on the other hand, has the following characteristics: PV of after-tax cash inflows = $24,000; original investment outlay = $20,000. Assume that these two projects are mutually exclusive and that the company has adequate capital to fund either investment option. All the following statements are true except.(A) The NPV of Project A is $5,000.(B) The IRR of Project A is greater than the cost of capital (discount rate).(C) The profitability index (PI) for Project A is 1:1.(D) Project A is preferable to Project B (all else held constant).(E) The economic rate of return on Project A exceeds the discount rate