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Consider the Following Two Projects: Assume That Projects a and B

Question 116

Multiple Choice

Consider the following two projects: Consider the following two projects: Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to ________. A) invest in project A, since NPV<sub>B</sub> < NPV<sub>A</sub> B) invest in project B, since IRR<sub>B</sub> > IRR<sub>A</sub> C) invest in project B, since NPV<sub>B</sub> > NPV<sub>A</sub> D) invest in project A, since NPV<sub>A</sub> > 0 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to ________.


A) invest in project A, since NPVB < NPVA
B) invest in project B, since IRRB > IRRA
C) invest in project B, since NPVB > NPVA
D) invest in project A, since NPVA > 0

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