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
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