You have analyzed two mutually exclusive projects of similar size and have compiled the following information based on your analysis. Both projects have 3-year lives.

	Project A	Project B
Internal Rate of Return	12%	12.5%
Net present value	$81,406	$82,909
Payback period	2.31 years	2.48 years

You have been asked for your best recommendation given this information. Your recommendation should be to accept:

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

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

C. project A and reject project B besed on their internal rate of returns.

D. both projects