our friend is working as a financial manager assistant. He is analysing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives.

	Project A	Project B
Net present value	£15,090	£14,693
Payback period	2.76 years	2.51 years
Average accounting return	9.3%	9.6%
Required return	8.3%	8%
Required AAR	9%	9%

Your friend has been asked for his best recommendation given this information. His recomendation should be to accept:

a. Project A and reject project B based on their net present values
b. project B and reject project A based on their average accounting returns.
c. project B and reject project A based on their payback periods.