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Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: Which project would you recommend?
Capital budgeting criteria: mutually exclusive projects
A firm with a WACC of 10% is considering the following mutually exclusive projects:
Which project would you recommend?
Select the correct answer.
I. Project A, since the NPVA> NPVB.
II. Both Projects A and B, since both projects have NPV's > 0.
III. Both Projects A and B, since both projects have IRR's > 0.
IV. Project B, since the NPVB> NPVA.
V. Neither A or B, since each project's NPV
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