Consider the two mutually exclusive projects below. What is the appropriate investment decision?

	Project A	Project B
Payback	3.4	4.4
NPV	- 2.79	- 1.56
IRR	18.56	10.67

Select one:

a.

Accept B because of the higher NPV (negative value that is smaller in magnitude).

b.

Accept A because of the higher IRR.

c.

Reject both projects because both NPVs are negative.

d.

Accept A because of the shorter payback.