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The firm is considering the following two projects, and it has a budget of $5 million Project A costs $1 million and has a NPV
The firm is considering the following two projects, and it has a budget of $5 million Project A costs $1 million and has a NPV of $0.3 million. Project B costs $2 million and has a NPV of $0.5 million. Suppose projects A and B are NOT mutually exclusive. Which one should the firm choose to invest? O Project A, because it has higher profitability index. Not enough information to determine. Both projects. O Project B, because it has higher NPV
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