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Consider the Following Two Projects: Assume That Projects Alpha

Question 59

Multiple Choice

Consider the following two projects: Consider the following two projects: Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale 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>B</sub> > IRR<sub>A</sub> D) invest in project Beta, since NPV<sub>Beta</sub> > NPV<sub>Alpha </sub>> 0 Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale 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 IRRB > IRRA
D) invest in project Beta, since NPVBeta > NPVAlpha > 0

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