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

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 million to profits this year. Assuming the firms goal is to maximize value for the owners of the firm, which of the following statements is MOST correct?
A.
The manager should select the project that causes the cash flow to increase the most, which could be A or B.
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 because it maximizes profits.
D.
The manager should select project A or he is irrational.

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