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:

Question

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:

Quizplus · Accepted Answer

The best recommendation is to accept project B and reject project A based on their net present values. Project A has a higher initial investment and higher cash flows, resulting in a higher net present value. However, project B has a higher net present value when considering the time value of money. Therefore, project B should be accepted over project A.

Isaac Has Analyzed Two Mutually Exclusive Projects of Similar Size