Matt Is Analyzing Two Mutually Exclusive Projects of Similar Size

Multiple Choice

Matt is analyzing two mutually exclusive projects of similar size and has prepared the following data.Both projects have 5 year lives. Matt has been asked for his best recommendation given this information.His recommendation should be to accept:

A) project B because it has the shortest payback period.
B) project A and reject project B based on their net present values.
C) both projects as they both have positive net present values.
D) project B and reject project A based on their average accounting returns.
E) project B and reject project A based on both the payback period and the averageaccounting return.