Solved

You Are Considering Two Independent Projects with the Following Cash 10%10 \%

Question 107

Multiple Choice

You are considering two independent projects with the following cash flows. The required return for both projects is 10%10 \% . Given this information, which one of the following statements is correct?
 You are considering two independent projects with the following cash flows. The required return for both projects is  10 \% . 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)


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:

verifed

Verified

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

Related Questions