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THE NPV OF PROJECT A IS 100 AND THE NPV OF PROJECT B IS 130. IF BOTH PROJECTS ARE TRADITIONAL PROJECTS IE. INITIAL CASH OUTFLOW
THE NPV OF PROJECT A IS 100 AND THE NPV OF PROJECT B IS 130. IF BOTH PROJECTS ARE TRADITIONAL PROJECTS IE. INITIAL CASH OUTFLOW FOLLOWED BY CASH INFLOWS, AND HAVE THE SAME MAGNITUDE OF INITIAL INVESTMENT, WHICH OF THE FOLLOWING STATEMENT (S) ARE TRUE":
1) IRR OF A IS GREATER THAN IRR OF B
2) PROFITABILITY INDEX OF B> PROFITABILITY INDEX OF A
3) PAYBACK PERIOD OF B > PAYPACK PERIOD OF A
4) DISCOUNTED PAYBACK PERIOD OF B < DISCOUNTED PAYBACK PERIOD OF A
POSSIBLE ANSWERS:
A) 1 ONLY B) 2 ONLY C) 1 AND 2 ONLY D) 2 AND 3 ONLY E) 1, 2, AND 3 ONLY
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