You are considering the following two mutually exclusive projects. The required return on each project is 12 percent. Which project should you accept and what is the best reason for that decision?

Project A Project B

Year 0 -$15,000 -$15,000

Year 1 9,000 3,000

Year 2 8,000 5,000

Year 3 5,000 9,000

Year 4 6,000 11,000 a. Project A; because it pays back faster b. Project A; because it pays back slower c. Project B; because it has the higher profitability index d. Project A; because it has the higher net present value e. Project B; because it has the higher net present value