Ben is analyzing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives.

Project AProject B

Net present value$15,090$14,693

Payback period2.76 years2.51 years

Internal Rate of Return9.3%9.6%Required return8.3%8.0%

Ben has been asked for his best recommendation given this information. His recommendation should be to accept:

A. project B because it has the shortest payback period.

B. both projects as they both have positive net present values.

C. project A and reject project B based on their net present values.

D. project B and reject project A based on their internal rate of returns.

E. project B and reject project A based on both the payback period and the internal rate of return.