Project a Has NPV of $45 Million While Project B

question 4

Multiple Choice

Project A has NPV of $45 million while project B has NPV of $54.5 million.If the cost of project A is $33 million and the cost of project B is $22 million,which project should be chosen if only one can be chosen?

• A)Project A.
• B)Project B.
• C)Neither.
• D)Both.
• E)Answer varies,depending on inflation.

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