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Question

You are investigating two mutually exclusive investment projects for the firm, project A and project B.  After your analysis you find that the IRRA>IRRB, but that the NPVA<NPVB.  Given this information you should:

  • Choose neither project because of conflicting results
  • Choose both projects as the results indicate either will work
  • Choose B because IRR results are not conclusive with mutually exclusive projects
  • Choose A because NPV results are not conclusive with mutually exclusive projects
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