Question
Read carefully, this question is slightly different than (12), the prior question: Project A has an IRR of 13% and an NPV of $32,011 when
Read carefully, this question is slightly different than (12), the prior question:
Project A has an IRR of 13% and an NPV of $32,011 when a 7% discount rate is applied.
Project B has an IRR of 11% and an NPV of $265,012 when a 7% discount rate is applied.
You can only choose between A and B (A and B are mutually exclusive).
Your company has a hurdle rate of 15% on all projects.
Which project do you choose?
Group of answer choices
(a) A
(b) B
(c) Neither
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Investment Banking A Guide To Underwriting And Advisory Services
Authors: Giuliano Iannotta
1st Edition
3540937641,354093765X
