Two Mutually Exclusive Projects Have the Following Positive NPVs and Project

Multiple Choice

Two mutually exclusive projects have the following positive NPVs and project lives. $$\begin{array} { r c c } \text { Project } & \text { NPV } & \text { Life } \\\text { Project A } & \$ 5,000 & 3 \text { years } \\\text { Project B } & \$ 6,500 & 5 \text { years }\end{array}$$
If the cost of capital were 15%,which project would you accept?

A) Project A because it has higher EAC
B) Project B because it has higher EAC
C) Project A because its NPV can be earned more quickly
D) Project B beca