Matt is analyzing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives. Matt has been asked for his best recommendation given this information.

Hisrecommendation should be to accept:

A. project B because it has the shortest payback period.

B. both projects as they both have positive net present values.

C. project A and reject project B based on their net present values.

D. project B and reject project A based on other criteria not mentioned in the problem.

E. project B and reject project A based on both the payback period and the average accounting return.

The answer is letter C but I dont know how to work it out.