Question
Project NPV IRR A $1,000 15% B $800 20% Two mutually exclusive projects have the above information. The firms WACC is 10%. Applying the NPV
| Project | NPV | IRR |
| A | $1,000 | 15% |
| B | $800 | 20% |
Two mutually exclusive projects have the above information. The firms WACC is 10%. Applying the NPV decision rule, which project (if any) should the firm select?
| Neither project | ||
| Both projects | ||
| Project A, because it has a higher NPV | ||
| Project B, because it has a higher IRR |
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Exploring Public Relations And Management Communication
Authors: Ralph Tench, Stephen Waddington
5th Edition
1292321741, 9781292321745
