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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
- 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
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