In Comparing Two Mutually Exclusive Projects of Equal Size and Equal

question 36

Multiple Choice

In comparing two mutually exclusive projects of equal size and equal life, which of the following statements is most correct?

• A)The project with the higher NPV may not always be the project with the higher IRR.
• B)The project with the higher NPV may not always be the project with the higher MIRR.
• C)The project with the higher IRR may not always be the project with the higher MIRR.
• D)All of the above answers are correct.
• E)Answers a and c are both correct.