Which statement would most likely explain why SSI would choose Project B over project A?
Southwest Supplies Inc. (SSI) is considering the following two projects with cash-flows discounted at SSI’s weighted average cost of capital.
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SSI can only afford to invest in one of the projects.
Which statement would most likely explain why SSI would choose Project B over project A?
A . Project B results in a higher cumulative accounting income
B. Project B generates significantly more non-cash expenses
C. Project B cash-flows are relatively more certain
D. Project B cash-flows are to be received sooner
Answer: D
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