Multiple Choice
You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is for project and for project . 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.
Correct Answer:

Verified
Correct Answer:
Verified
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