You found the following two mutually exclusive investments. You require a 18% ROI, a payback period of 5 years, and discounted payback period of 7 years.

	Investment A	Investment B
Investment Cost	$10,000	$18,000
NPV	$1,500	$1,900
IRR	27.00%	25.00%
Payback Period	4 years	5 years
Discounted Payback Period	7 years	6 years

Based on Payback Period, which investment would you choose?

Select one:

a.

Investment A, pays back faster.

b.

Investment B, pays back within 5 years.

c.

None of the investments, doesn't pay back within the time required.

d.

Cannot compare based on Payback period.