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Suppose project A has an IRR of 15% and Project B has an IRR of 21% and the company's WACC is 10%. The projects are
Suppose project A has an IRR of 15% and Project B has an IRR of 21% and the company's WACC is 10%. The projects are mutually exclusive and there is no capital rationing.Which one of the following statements is true?
a) Neither Project A or B should be accepted.
b) Both projects should be accepted
c) We must know projects' NPV before determining which should be accepted.
d) Only project A should be accepted
e) Only project B should be accepted
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