-You Are Considering Two Independent Projects with the Following Cash

question 78

Multiple Choice

-You are considering two independent projects with the following cash flows.The required return for both projects is 16 percent.Given this information,which one of the following statements is correct?

• A) You should accept Project A and reject Project B based on their respective NPVs.
• B) You should accept Project B and reject Project A based on their respective NPVs.
• C) You should accept Project A and reject Project B based on their respective IRRs.
• D) You should accept Project B and reject Project A based on their respective IRRs.
• E) You should accept both projects based on both the NPV and IRR decision rules.

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