Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
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