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 project A because more funds are received earlier 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 the project that maximizes long term profits, not just one year of profits The manager should select project B because it generates greater profits in two years

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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 project A because more funds are received earlier.
		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 the project that maximizes long-term profits, not just one year of profits.
		The manager should select project B because it generates greater profits in two years.

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