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Use the Table for the Question(s)below

Question 47

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
Use the table for the question(s) below. Consider the following two projects:    -Assume that projects Alpha and Beta are mutually exclusive.The correct investment decision and the best rational for that decision is to: A) invest in project Beta,since NPV<sub>Beta</sub> > 0. B) invest in project Alpha,since NPV<sub>Beta</sub> < NPV<sub>Alpha</sub>. C) invest in project Beta,since IRR<sub>Beta</sub> > IRR<sub>Alpha</sub>. D) invest in project Beta,since NPV<sub>Beta</sub> > NPV<sub>Alpha </sub>> 0. E) invest in project Alpha,since IRR<sub>Alpha</sub> > IRR<sub>Beta</sub>.
-Assume that projects Alpha and Beta are mutually exclusive.The correct investment decision and the best rational for that decision is to:


A) invest in project Beta,since NPVBeta > 0.
B) invest in project Alpha,since NPVBeta < NPVAlpha.
C) invest in project Beta,since IRRBeta > IRRAlpha.
D) invest in project Beta,since NPVBeta > NPVAlpha > 0.
E) invest in project Alpha,since IRRAlpha > IRRBeta.

Correct Answer:

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