Consider two mutually exclusive Projects A (3-year life) & B (4-year life), with the following cash flows. A: -14,000, 7,000, 8,000, 9,000. B: -20,000, 8,000, 7,000, 7,000, 12,000. The discount rate is 10%. Which statement is correct?

Question 12 options:

	B is chosen because it has a shorter Pay Back Period.
	A is chosen because it has a higher NPV.
	None of the above is correct.
	B is chosen because it has a higher NPV.
	A is chosen because it has a shorter Pay Back Period