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Project NPV IRR A -$156 3% B -$242 2% Two mutually exclusive projects have the above information. If the firms WACC is 10%, then which
Project | NPV | IRR |
A | -$156 | 3% |
B | -$242 | 2% |
Two mutually exclusive projects have the above information. If the firms WACC is 10%, then which project (if any) should the firm select?
Project B, because it has a lower NPV and IRR | ||
Neither project | ||
Both projects | ||
Project A, because it has a higher NPV and IRR |
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