Multiple Choice
You know that two mutually exclusive projects are of different sizes.The smaller project is known to have a positive NPV.Which one of these accurately describes a method of properly determining which one,if either,project should be accepted?
A) Select the project with the higher internal rate of return
B) Accept the project with the shorter payback period
C) Accept the larger project if the incremental IRR exceeds the discount rate
D) Select the project with the higher profitability index
E) Accept the smaller project without any further analysis
Correct Answer:

Verified
Correct Answer:
Verified
Q67: A project has an initial cost of
Q68: Net present value<br>A)considers only cash flows occurring
Q69: What is the key reason why a
Q70: Assume you are looking at a graph
Q71: The internal rate of return<br>A)is more reliable
Q73: A project has an initial cash inflow
Q74: Two mutually exclusive projects produce the same
Q75: Webster's wants to introduce a new product
Q76: The discounted payback method<br>A)discounts a project's initial
Q77: The value of a firm<br>A)increases when a