The Weston Corporation Is Analyzing Projects A, B, and C

Multiple Choice

The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each of these projects has a useful life of five years. The following information has been obtained:



-Which of the following statements is correct?

A) Project B is preferred over Project C according to the project profitability index.
B) Project B is preferred over Project A according to the internal rate of return.
C) Project C is preferred over Project A according to the project profitability index.
D) Project A is preferred over Project C according to a net present value ranking.