A financial manager is evaluating several mutually exclusive investment opportunities. These projects have already gone through an initial screening process and are all deemed to be positive NPV projects. When choosing which project(s) to accept, the manager should follow which of the following procedures?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A financial manager is evaluating several mutually exclusive investment
opportunities. These projects have already gone through an initial screening
process and are all deemed to be positive NPV projects.
When choosing which project(s) to accept, the manager should follow which of
the following procedures?
O A. She should choose the project with the shortest Payback Period.
O B. She should choose the project with the lowest Internal Rate of Return
(IRR).
O C. She should choose the project with the highest Net Present Value
(NPV).
O D. She should choose the project with the highest Internal Rate of Return
(IRR).
O E. Since these projects are all positive NPV, the manager should accept all
of them.
Transcribed Image Text:A financial manager is evaluating several mutually exclusive investment opportunities. These projects have already gone through an initial screening process and are all deemed to be positive NPV projects. When choosing which project(s) to accept, the manager should follow which of the following procedures? O A. She should choose the project with the shortest Payback Period. O B. She should choose the project with the lowest Internal Rate of Return (IRR). O C. She should choose the project with the highest Net Present Value (NPV). O D. She should choose the project with the highest Internal Rate of Return (IRR). O E. Since these projects are all positive NPV, the manager should accept all of them.
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