Question
Projects A and B require an initial investment of $48,000 and $98,000, respectively. The projects are mutually exclusive and both have positive net present values.
Projects A and B require an initial investment of $48,000 and $98,000, respectively. The projects are mutually exclusive and both have positive net present values. Which of these methods is probably the best method to use to determine which project to accept?
Payback
Modified IRR
AAR
Incremental IRR
IRR
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
