Five Mutually Exclusive Projects Had the Following Information Which Project Is Preferred?
A)Project a
B)Project B
C)Project C

question 117

Multiple Choice

Five mutually exclusive projects had the following information: $$\begin{array} { l c c c c c } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } & \mathrm { E } \\\mathrm { NPV } & \$ 200 & \$ 400 & \$ 2,000 & \$ 1,000 & \$ ( 400 ) \\\text { IRR } & 11 \% & 13 \% & 10 \% & 12 \% & 8 \%\end{array}$$ Which project is preferred?

• A)Project A
• B)Project B
• C)Project C
• D)Project D

---

Definitions:

Operating Income

Income generated from a company's primary business operations, excluding deductions of interest and taxes.

Year 2

Typically refers to the second year of a given period, plan, or study, often used in financial and academic contexts.

Absorption Costing

A method of accounting that incorporates both variable and fixed manufacturing expenses into the pricing of a product.

Operating Income

Income from a company’s everyday business operations, calculated before taxes and interest.