Question
The XYZ company has projects A and B, and these are mutually exclusive projects. Project A has a net present value (NPV) of +$500,000 and
The XYZ company has projects A and B, and these are mutually exclusive projects.
Project A has a net present value (NPV) of +$500,000 and an internal rate of return (IRR) of 16%.
Project B has a net present value (NPV) of +$240,000 and an internal rate of return (IRR) of 24%.
The correct decision for the company is to _____.
a)accept only project A
b)accept only project B
c)accept project A and accept project B
d)reject project A and reject project B
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
