Accounting 200488-Abc Ltd Is Considering Two Possible Projects

ABC Ltd is considering two possible projects but can only raise enough funds to proceed with one of them. Investment appraisal techniques have been used and the following results found: Project AProject BPayback period3. 5 years2. 8 yearsRate of return16%14%NPV+$850000+$710000Which of the following is the most logical interpretation of the results?a. Project A should be selected because it will yield the highest NPV. b. Project A should be selected as it gives the longest payback period. c. Project B should be selected because the payback period is lower. d. The rate of return is the most meaningful investment appraisal technique and hence Project A should be selected.

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