Question
Project A has a NPV of $300K and an IRR of 15%. Project B has a NPV of $250K and an IRR of 20%. Both
Project A has a NPV of $300K and an IRR of 15%. Project B has a NPV of $250K and an IRR of 20%. Both projects require an investment of 100K. Which of the following statements is correct if you can choose only one project?
A. Project A is preferred over Project B
B.Project B is preferred over Project A
C.Project A has a higher profitability index than Project B
D.A and C are correct
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Personal Finance
Authors: Megan Noel, Dan French
2nd Edition
1465246479, 9781465246479
