Question
Assume that you are analyzing two independent capital budgeting projects project AAA and project ZZZ that both have positive net present values (NPV > 0).
Assume that you are analyzing two independent capital budgeting projects project AAA and project ZZZ that both have positive net present values (NPV > 0). Which of the following is/are true of these two independent projects?
A. Since both projects have positive net present values, they should both be accepted. B. Since both projects have positive net present value, they should both be rejected. C. Only the project with the higher net present value should be accepted. D. Only the project with the lower net present value should be accepted. E. None of the above statements is true.
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