Question
1. We have two projects. IRR of the project A is 10%, and IRR of the project B is 11% while we have required rate
1. We have two projects. IRR of the project A is 10%, and IRR of the project B is 11% while we have required rate of return of 5%. This means that both these two projects are acceptable , But we cannot say which project is better than the other one TRUE or FALSE
2. We have two projects. NPV of the project A |s +10 Million, and its Payback period is 9 months. NPV of the project B is + 12 Million, but its payback period is 9 years. This means that both these two projects are acceptable since they have positive NPVs. But we cannot say which project is better than the other one. TRUE or FALSE
3. We have two projects .
Project A: Payback: 1 year, discounted payback is 2 years.
project B : Payback: 1.5 year, discounted payback is 1.9 year
We only have this information. I think, financially speaking, A is a better project than B. TRUE or False
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