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Your boss says use a Discount Rate of 7.4% and you decide to use the Annualized...

Your boss says use a Discount Rate of 7.4% and you decide to use the Annualized Net Present Value (ANPV). The ANPV for Project #A with a timeframe of five years has already been computed at $246,487. Project #B with an NPV of $900,000 needs the ANPV computed and has a timeframe of four years. Which Project should be selected?

Project #B because the ANPV is $268,097 .

Project #A because the ANPV is greater than Project #B.

Project #B because of the high NPV at $900,000.

Project #A because the timeframe is five years, one year longer than Project #B.

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