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You are presented with the following information on two projects. The firm has enough money to finance all projects. Two projects are not mutually exclusive
You are presented with the following information on two projects. The firm has enough money to finance all projects. Two projects are not mutually exclusive projects. Period 0 1 2 3 IRR NPV Project A -50 +25 +25 25 23.4% $3.498 Project -20 +115 11.5 +115 33.1% S4.000 If we use NPV as the decision rule: Accept project A, Reject B Roject project A, and B Reject project A, Accept B Accept project A and B 0 0 0 0 0 Can't make decision
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