A firm is considering two equally risky projects, both of which could be accepted. Project A has an IRR of 11%, while Project B's IRR is 14%. In addition, both Project A and Project B have a positive NPV.

Given a discount rate of 9%, which project(s) should the firm accept?

Which is correct?

Project A should be accepted.

Project B should be accepted.

Both Project A and Project B should be accepted.

Answer rating: 100% (QA)

To determine which projects the firm should accept we compare the inter... View the full answer