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Question 6 3 pts The driving service VIA's financial team has estimated and calculated the cash flows and Modified IRR's of two independent projects (i.e.,
Question 6 3 pts The driving service VIA's financial team has estimated and calculated the cash flows and Modified IRR's of two independent projects (i.e., they could do both projects). Based on the estimated cash flows Project A has a Modified IRR of 15%, while Project B has Modified IRR of 16%. Management's minimum required investment return for the projects like these is 20% based on the capital asset pricing model (CAPM). Management should ... Proceed with Project A only. Proceed with Project B only Proceed with both Project A & B Neither one should be pursued. Question 14 3 pts The CFO of SalesForce has just received two new proposals that are considered mutually exclusive capital projects. Therefore, she must rank the projects based on the firm's preference for IRR criteria, but she knows that she may not end up with a clear ranking of the two projects. Using the Net Present Value (NPV) method instead of IRR as the second measure should generally provide a consistent and clear ranking of the projects and therefore resolve her issue. True False
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