Steve has analyzed two mutually exclusive projects of similar size and has complied the following information based on his analysis. Both projects have 4-year lives. Project A Project B
Net Present Value $13,975.11 $12,100.24
Payback Period 3.48 years 3.78 years
Required Return 14.50 % 13.50 %

Steve has been asked for his best recommendation given this information. His recommendation should be to accept:

a. both projects.
b. Project A because it has the shortest payback
c. Project B and reject Project A based on their required return.
d. Project A and reject Project B based on their net present values.
e. neither project