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

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

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

The manager should select project B because it generates greater profits in two years.

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

The manager should select project A because more funds are received earlier.

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