If you are funding your chosen project exclusively with a loan that must be repaid in 1.2 years, carrying 5% interest, state:

- Which method you will use to determine the best project (Payback or NPV),

- Why you chose this method (Because...), and

- Which project is best for you (A or B).

IE choose three items for your complete answer.

Choices:

a. NPV

b. Because this method adds the most to my wealth

c. Project B is best for me.

d. Projects A and B are equally good for me.

e. Because choosing the other method will cause me to default on the loan and go bankrupt

f. Payback

g. Because this method gives me the highest NPV.

h. Project A is best for me.