Question
Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows and requires same level of initial outlay. Project
Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows and requires same level of initial outlay. Project A has an IRR of 11%, while Project B's IRR is 14%. If the company's cost of capital is 12%, which project should the company accept?
- Project A
- Project B
- Both projects are acceptable
- Neither of the projects is acceptable
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The Handbook Of Structured Finance
Authors: Arnaud De Servigny, Norbert Jobst
1st Edition
0071468641, 978-0071468640
