Isaac Has Analyzed Two Mutually Exclusive Projects of Similar Size

Multiple Choice

Isaac has analyzed two mutually exclusive projects of similar size and has compiled the following information based on his analysis. Both projects have 3- year lives. Isaac has been asked for his best recommendation given this information. His recommendation should be to accept:

A) both projects.
B) project B because it has the shortest payback period.
C) project B and reject project A based on their net present values.
D) project A and reject project B based on their average accounting returns.
E) neither project.