Multiple Choice
You are considering two independent projects with the following cash flows. The required return for both projects is . Given this information, which one of the following statements is correct?
A) You should accept project B since it has the higher IRR and reject project A because you
Can not accept both projects.
B) You should accept project A because it has the lower NPV and reject project B.
C) You should accept project A because it has the higher NPV and you can not accept both
Projects.
D) You should accept project B because it has the higher IRR and reject project A.
E) You should accept both projects if the funds are available to do so since both NPV's are >
0)
Correct Answer:
Verified
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