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Project a and B Both Have Positive NPVs

Question 80

Multiple Choice

Project A and B both have positive NPVs.If A and B are mutually exclusive,others thing held constant,which project will management accept?


A) Management will accept the project with the lower NPV.
B) Management will accept the project with the higher NPV.
C) Management will accept both A and B since they both have positive NPVs.
D) When projects are mutually exclusive, the NPV rule is ignored and neither project is accepted.

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