Question
Alberta Inc. is considering investing in two projects, each of which has an initial investment requirement of ( $ 100,000 ). Both A and B
Alberta Inc. is considering investing in two projects, each of which has an initial investment requirement of \( \$ 100,000 \). Both A and B are "normal" risk for the company. A has a net present value of \( \$ 25,000 \). B has a net present value of \( \$ 20,000 \). None of the answers provided \( A \) and \( B \) are equally valuable. \( A \) is better than \( B \) because it has a higher net present value and the same risk level. \( B \) is better than \( A \) because of the risk. There is insufficient information to make a rational choice between A and B.
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