Today Campbell and Sons Inc. was offered the option of undertaking two mutually exclusive projects. Net of costs, you estimate that Project Agora has an NPV of $30,000 and an IRR of 17%, while Project Capricorn has an NPV of $25,000 and an IRR of 18%. Based on this information, it is most likely that:

a). The company will accept both projects.
b). Incorrect The company will accept Project Capricorn.
c). The company will pass on both project.
d). The company will pay $55,000 for both projects.
e). The company's value has increased by $30,000.

Answer rating: 100% (QA)

In case of Mutually Exclusive Projects co... View the full answer