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You have analyzed two mutually exclusive (you can do one or the other not both) projects of similar size and have compiled the following information

You have analyzed two mutually exclusive (you can do one or the other not both) projects of similar size and have compiled the following information based on your analysis. Both projects have 3- year lives. You have been asked for your best recommendation given this information. Do you accept Project A and why? Do you accept Project B and wh

Project A

Project B

Net Present Value

$571,224

$552,158

Payback Period

2.41

2.16

Average Accounting Return

12.34

12.78

Required AAR

11.5

11.5

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