Ontario Corp.s management has determined that two independent projects have the following NPV: Project A NPV $5,000 Project B NPV $10,000 Which best describes the correct managerial decision given the information above (assume Ontario Corp can fund both projects if required)?

Answers: Accept both projects since they are independent and have positive NPVs. Decline both projects since they are independent and have positive NPVs. Accept B, and decline A, since B has a higher positive NPV compared to A. In order to decide between these independent projects, we need the IRR of each project.