Question: Projects A and B are mutually exclusive and have normal cash flows. Project A has an NPV of $427 and Project B has an NPV

Projects A and B are mutually exclusive and have normal cash flows. Project A has an NPV of $427 and Project B has an NPV of $337. Project A has an IRR of 15% and Project B has an IRR of 10%. Which of the following statements is correct?

Project B would be selected instead of Project A because NPV x IRR is greater.

If the two projects are mutually exclusive, it is reasonable to pick either project given the information provided.

Project B would be selected if the MIRR was lower as well.

Project A would be selected instead of Project B.

Project B would be selected instead of Project A.

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