Question
Project NPV IRR A $600 25% B $400 30% Two mutually exclusive projects have the above information. The firms WACC is 15%. Applying the IRR
| Project | NPV | IRR |
| A | $600 | 25% |
| B | $400 | 30% |
Two mutually exclusive projects have the above information. The firms WACC is 15%. Applying the IRR decision rule, which project (if any) should the firm select?
Neither project
Project A, because it has a higher NPV
Both projects
Project B, because it has a higher IRR
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Inside Company Valuation
Authors: Angelo Corelli
1st Edition
3319537822, 9783319537825
