You have been asked to select between three projects. Project A has a net present value of $54,750 and will take six months to complete. Project B has a net present value of $85,100 and will take two years to complete. Project C has a net present value or $15,000 and a benefit-cost ratio of 5:2. Which project should you choose?
A. Project A
B. Project B
C. Project C
D. There is not enough information to decide.
Answer: The important information in this question are the NPV values. The given times and BCR are unnecessary information. Choose the greatest NPV. (B)