Question: Milo (Pty) Ltd is considering two mutually exclusive projects with the following projected cash flows: Based on the above cash flows and a cost of

Milo (Pty) Ltd is considering two mutually exclusive projects with the following projected cash flows: Based on the above cash flows and a cost of capital (discount rate) of 10%, which of the following statements is the most accurate: a) Project Ice would be selected if the company uses NPV and IRR for the evaluation of projects. b) Project Fire would be selected if the company uses IRR and payback-period for the evaluation of projects. c) If the company uses IRR only in the evaluation of projects, project Ice will be selected. d) Project Fire would be selected if the company uses NPV for the evaluation for projects. e) None of the above

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