Question: please answer both questions Question 4 Not yet answered Marked out of oso If there is conflicts in the indicated accept/reject decision between two mutually
Question 4 Not yet answered Marked out of oso If there is conflicts in the indicated accept/reject decision between two mutually exclusive projects due to the IRR-based indicator, you should question a. rely on the decision indicated by the NPV method and ignore the IRR b. reject both projects due to ambiguity in the decision-making process. oc. base the final decision on the payback method. d. rely on computing the average by combining both projects into one larger project e accept both projects if both are acceptable according to NPV. Question 5 Not yet answered Marked out of 0.15 You are considering two independent projects with the same discount rate of 11 percent. Project A costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. You have sufficient funds to finance any decision you make. Project 8 costs $284,700 and has cash flows of $75,000 $106,400, and $159,800 for Years 1 to 3, respectively. You have sufficient funds to finance any decision you make. Which project or projects, if either, should you accept and why? question a. Both projects becaute their NPVs are both positive and their inks exceed the discount rate. b. Project B; because it is the larger-sized project with a positive IRR c. Project B: because its IRR exceeds the discount rate d. Project A because it IRR exceeds the discount rate O . Project : because it has the larger NPV
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