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Isaac has analvzed two mutually exclusive proiects that have 3-vear lives. Project A has an NPV of $77.406, a payback period of 2.78 vears, and

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Isaac has analvzed two mutually exclusive proiects that have 3-vear lives. Project A has an NPV of $77.406, a payback period of 2.78 vears, and an IRR of 14.31 percent. Project B has an NPV of $73,909, a payback period of 2.27 vears, and an IRR of 16.22 percent. The required return for both Projects is 11.5 Isaac must make a recommendation and justify it in 15 words or less. What should his recommendation be? O A. Accept Project B and reject Project A based on the IRRs B. Accept Project A and reject Project B based on the NPVs O C. Accept Project A because it has the shortest payback period D. Accept both projects because both NPVs are positive

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