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QUESTION 2 Given the NPV of project 1 as 10,000 and project 2 as 20,000, if the projects are said to be mutually exclusive which
QUESTION 2
Given the NPV of project 1 as 10,000 and project 2 as 20,000, if the projects are said to be mutually exclusive which project(s) will you accept?
Both projects because they have positive net present values
Project 1 because it has the lower cost as measured by the net present value
We cannot decide as the information given is not sufficient, for instance the risk-free rate
Project 2 because it has the greater net present value
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Survey Research In Corporate Finance Bridging The Gap Between Theory And Practice
Authors: H. Kent Baker, J. Clay Singleton, E. Theodore Veit
1st Edition
019534037X, 9780195340372
