Question: 1) A financial manager is considering two projects, A and B. A is expected to add $2 million to profits next year, while B is

1) A financial manager is considering two projects, A and B. A is expected to add $2 million to profits next year, while B is expected to add $1.5 million to profits this year. Which of the following statements is MOST correct?

A) The manager should select project A because it maximizes profits.

B) The manager should select the project that maximizes long-term profits, not just one year of profits.

C) The manager should select project A or he is irrational.

D) The manager should select the project that causes the stock price to increase the most, which could be A or B.

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