Capital budgeting analysis of mutually exclusive projects A and B yields the following:

	Project a	Project b
irr	18%	22%
npv	$270,000	$255,000
payback	2.5 years	2.0 years

Management should choose:

a) Project b because most executives prefer the IRR method

b) Project b because two out of three methods choose it

c) Project a because NPV is the best method

d) either project because the results aren't consistent