Projects a and B Require an Initial Investment of $48,000

question 31

Multiple Choice

Projects A and B require an initial investment of $48,000 and $98,000,respectively.The projects are mutually exclusive,and you know the smaller project has a positive NPV.Which one of these methods is probably the best method to use to determine which project to accept?

• A)Discounted payback
• B)Modified internal rate of return
• C)Average accounting rate of return
• D)Incremental internal rate of return
• E)Internal rate of return

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