Aesop has to choose betweentwo mutually exclusive projects that have 5-year lives and conventional cash flows. Project Lionhas an NPV of $73,406and apayback period of 3.48 years. Project Lambhasa payback period of only 2.22yearsand an IRR of 13.22 percent. The required return for Project Lionis 16percent while it is 14percent for Project Lamb.

Which project, if any, should Aesop recommend?

A) Accept Project Lamb because it lower required return & must be the safer investment

B) Not enough info

C) Accept Project Lion since it has a higher NPV

D) Accept Project Lamb because it has the shortest payback period

E) Accept both projects because both NPV's are positive.