ABC Ltd is considering two possible projects but can only raise enough funds to proceed with one of them. Investment appraisal techniques have been used and the following results found:

	Project A	Project B
Payback period	3.5 years	2.8 years
Rate of return	16%	14%
NPV	+$850000	+$710000

Which of the following is the most logical interpretation of the results?

a.	Project A should be selected because it will yield the highest NPV.
b.	Project A should be selected as it gives the longest payback period.
c.	Project B should be selected because the payback period is lower.
d.	The rate of return is the most meaningful investment appraisal technique and hence Project A should be selected.