Examine the following information about two mutually exclusive projects being considered by PJ's Pizzas. Then, answer the question that follows.

Project A (purchase of new ovens and all new kitchen equipment for two existing outlets) Initial Investment: ($72,000) Payback Period: 3.7 years NPV: $8,641.21 IRR: 14.96% Profitability Index: 1.84 MIRR: 10.53%

Project B (purchase of an old diner and conversion into a new outlet for PJ's Pizzas) Initial Investment: ($64,000) Payback Period: 4.6 years NPV: $12,314.72 IRR: 18.45% Profitability Index: 2.48 MIRR: 14.27%

Based on this information, what action should the company take?

Select a Choice Below

current question choices

OptionA

Invest in Project A only

OptionB

Invest in Project B only

OptionC

Invest in either Project A or B and expect similar returns

OptionD

Invest in neither Project A and B