Solved

You Are Considering the Following Two Mutually Exclusive Projects That 11.25%11.25 \%

Question 106

Multiple Choice

You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25%11.25 \% for project AA and 10.75%10.75 \% for project BB . Which project should you accept and why?
 You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is  11.25 \%  for project  A  and  10.75 \%  for project  B . Which project should you accept and why?    A) project A; because its NPV is about £335 more than the NPV of project B. B) project A; because it has the higher required rate of return. C) project B; because it has the largest total cash inflow. D) project B; because it returns all its cash flows within two years. E) project B; because it is the largest sized project.


A) project A; because its NPV is about £335 more than the NPV of project B.
B) project A; because it has the higher required rate of return.
C) project B; because it has the largest total cash inflow.
D) project B; because it returns all its cash flows within two years.
E) project B; because it is the largest sized project.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions