Question: #27 A company is considering two mutually exclusive projects, A and B. Project A has an NPV of $3,000,000 and Project B has an NPV

#27

A company is considering two mutually exclusive projects, A and B. Project A has an NPV of $3,000,000 and Project B has an NPV of $4,000,000. What should the company do if the financial objective of the firm is to maximize the value of the firm?

a. Pursue only Project A.

b. Pursue only Project B.

c. Pursue both Project A and Project B.

d. Do not pursue either project.

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