Two capital budget projects are being considered at Alpha Co. Both projects are acceptable choices, but they have different required initial investments. Given the following information decide which project is BEST and why?

net present value profitability index

Project A $100,000 1.38

Project B $200,000 1.14

		Project B is best because it has the lower profitability index.
		Project A is best because it has the higher profitability index.
		Project B is best because it has the higher net present value.
		Project A is best because is has the lower net present value.