Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a 14 percent return on your investment. If you apply the payback criterion, you will choose investment _____, if you apply the NPV criterion, you will choose investment _____; if you apply the IRR criterion, you will choose investment ____; if you choose the profitability index criterion, you will choose investment ____. Based on your first four answers, which project will you finally choose?
A) A; B; A; A; B
B) A; A; B; B; A
C) A; A; B; B; B
D) B; A; B; A; A
E) B; A; B; B; A

Question

Consider the following two mutually exclusive projects:  Whichever project you choose, if any, you require a 14 percent return on your investment. If you apply the payback criterion, you will choose investment _____, if you apply the NPV criterion, you will choose investment _____; if you apply the IRR criterion, you will choose investment ____; if you choose the profitability index criterion, you will choose investment ____. Based on your first four answers, which project will you finally choose?
A) A; B; A; A; B 
B) A; A; B; B; A 
C) A; A; B; B; B 
D) B; A; B; A; A 
E) B; A; B; B; A

Quizplus · Accepted Answer

The Answer of Consider the following two mutually exclusive projects:  Whichever project you choose, if any, you require a 14 percent return on your investment. If you apply the payback criterion, you will choose investment _____, if you apply the NPV criterion, you will choose investment _____; if you apply the IRR criterion, you will choose investment ____; if you choose the profitability index criterion, you will choose investment ____. Based on your first four answers, which project will you finally choose?
A) A; B; A; A; B 
B) A; A; B; B; A 
C) A; A; B; B; B 
D) B; A; B; A; A 
E) B; A; B; B; A

Consider the Following Two Mutually Exclusive Projects: Whichever Project