Two projects both have positive NPV but unequal lives. They are not mutually exclusive and have unequal risk. X has a greater NPV than does H. Neither project can be replicated. Invest in:

A.

X

B.

The project with the higher Equivalent Annuity

C.

Both

D.

The project with the higher Fair Value

What rate of change in cash flow will cause the following project to just meet the requirements for investment? The project has an IRR without growth of 18% and a 14% required rate of return.

	A.	0%
	B.	-4%
	C.	4%
	D.	32%