Your company has two alternative opportunities, each requiring your entire capital investment budget of $325,000. Alternative A will return $390,000 at the end of one year; alternative B will return $216,000 at the end of each of the first two years. Which alternative should you recommend on the basis of

(a) net present worth if the required rate of return was 10%?

(b) When would/ wouldnt this be an appropriate managerial decision-making tool?