Assume that there are two competing projects, A and B. Project A has an NPV of $1,000 and an IRR of 15%. Project B has an NPV of $800 and an IRR of 20%. Which of the following is true? Project A should be chosen because it has a higher NPV Project B should be chosen because it has a higher IRR It is not possible to us NPV or IRR to choose between the two projects Neither projects should be chosen All of these

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  • Assume that there are two competing projects, A and B. Project A has an NPV of $1,000 and an IRR of 15%. Project B has an NPV of $800 and an IRR of 20%. Which of the following is true?
  1. Project A should be chosen because it has a higher NPV
  2. Project B should be chosen because it has a higher IRR
  3. It is not possible to us NPV or IRR to choose between the two projects
  4. Neither projects should be chosen
  5. All of these
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