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Within the context of size (scale) disparity, consider the initial investments, cash inflows, IRR, and NPV and PI (assuming RRR of 10% ) of the
Within the context of size (scale) disparity, consider the initial investments, cash inflows, IRR, and NPV and PI (assuming RRR of 10% ) of the following two mutually exclusive projects A and B. However notice that the two projects have two substantially different initial investments, CF0. Which of the following statements is correct: Select one: a. Select project A because it is ranked 1 based on IRR. b. Select the two projects because they have positive NPV and they are mutually exclusive projects c. Select project B because its NPV is higher than project A's NPV
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