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.
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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