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Project A requires a $500,000 initial investment and has an NPV of $76,890. Project B requires an initial investment of $175,000 and has an NPV
Project A requires a $500,000 initial investment and has an NPV of $76,890. Project B requires an initial investment of $175,000 and has an NPV of $62,500. What should company managers do?
A. Even if both projects are possible to pursue, company managers should only choose Project B, since it has a much higher return on investment than Project A.
B. If only one project is possible, then choose Project B.
C. If only one project is possible, then choose Project A.
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