Company A has a payback period of 3 years and company B has a payback period of 4 years, then:

a.

Company A has a higher net present value than company B.

b.

Company A and B have the same net present value.

c.

Company A has a lower net present value than company B.

d.

The relation between company A's net present value and company B's net present value cannot be determined from the given information.