Jack Smith, CFA, is analyzing independent investment projects X and Y. Smith has calculated the net present value (NPV) and internal rate of return (IRR) for each project:
Project X: NPV = $250; IRR = 15%
Project Y: NPV = $5,000; IRR = 8%
Smith should make which of the following recommendations concerning the two projects?

A. Accept both projects.
B. Accept Project X only.
C. Accept Project Y only.