What is the best reason for that decision

Reference no: EM13267030

You are considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should you accept and what is the best reason for that decision?

Year Project A Project B

0 --$24,000 --$24,000

1 9,000 7,000

2 12,000 9,000

3 10,000 18,000

Project A, because it pays back faster

Project A, because it has the higher profitability index

Project B, because it has the higher profitability index

Project A, because it has the higher net present value

Project B, because it has the higher net present value

Reference no: EM13267030

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