Haystack Bookstore is consider two competing projects, and can only fund one of them (they are mutually exclusive):

	Novelty Hats	Inflatable Cars
Payback Period	4.2 years	2.7 years
Internal Rate of Return	15%	12%
Net Present Value	+$230,000	+$190,000

Which project should be chosen, and which is the bestreason to choose that option?

Group of answer choices

Inflatable Cars: shorter payback period

Novelty Hats: longer payback period

Novelty Hats: higher NPV

Inflatable Cars: lower IRR

Novelty Hats: higher IRR

Inflatable Cars: lower NPV