Project a Is Opening a Bakery at 10 Center Street

Multiple Choice

Project A is opening a bakery at 10 Center Street.Project B is opening a specialty coffee shop at the same address.Both projects have unconventional cash flows,that is,both projects have positive and negative cash flows that occur following the initial investment.When trying to decide which project to accept,given sufficient funding to accept either project,you should rely most heavily on the ________ method of analysis.

A) profitability index
B) internal rate of return
C) payback
D) net present value
E) discounted payback