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ABC CO. is considering two mutually exclusive projects. Their cost of capital is 15% Project a has a a NPV of $-.25 and an IRR
ABC CO. is considering two mutually exclusive projects. Their cost of capital is 15%
Project a has a a NPV of $-.25 and an IRR of 13.7%
Project B has an NPV of $-1.37 and an IRR of 12.8%
Based on concepts discussed in chapter 11 you should advise them to
Select one:
a. Choose project A. It has the higher IRR.
b. Choose project B. It has the higher NPV.
c. Reject both projects based on a negative NPV .
d. Accept both projects based on a positive IRR
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