A facility manager is comparing two energy upgrades. Project A has an NPV of $45,000 and Project B has an NPV of $38,000 with a lower initial cost. Which project should be selected if the goal is to maximize value?
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A
Project B, because it requires less capital
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B
Project A, because it has the higher NPV
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C
Project A, only if its IRR exceeds the discount rate
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D
Project B, because it has a better cost-benefit ratio