Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Rate Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 60 N/A 0.16 -73 30 30 30 30 0.16 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to A. invest in project A, since NPV>0. B. Invest in project B, since NPV > NPVA C. invest in project A, since NPV OD. invest in project B, since IRR, > IRRA < NPVA AB O O

Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Rate Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 60 N/A 0.16 -73 30 30 30 30 0.16 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to A. invest in project A, since NPV>0. B. Invest in project B, since NPV > NPVA C. invest in project A, since NPV OD. invest in project B, since IRR, > IRRA < NPVA AB O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. RTOPIC: ENGINEERING ECONOMICS PLEASE ANSWER IN 4 DECIMAL POINTS
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