Question: Consider the two mutually exclusive projects below. What is the appropriate investment decision? Project A Project B Payback 3 years 2 years NPV $9,500 $8,250

Consider the two mutually exclusive projects below. What is the appropriate investment decision? Project A Project B Payback 3 years 2 years NPV $9,500 $8,250 IRR 27.25% 35.55% Select one: a. Accept B because of the higher IRR. b. Accept A because of the higher payback. c. Accept B because of the lower payback. d. Accept A because of the higher NPV

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