Question: Projects C and D both have normal cash flows and are mutually exclusive. Project C has a higher NPV than Project D at any cost
Projects C and D both have normal cash flows and are mutually exclusive. Project C has a higher NPV than Project D at any cost of capital greater than zero. If the cost of capital is 13% for these projects, then you should
A. Only pick Project C after making sure it's IRR is also greater than Project D's IRR
B. Check make sure that NPV, IRR and MIRR of C is greater than the respective values for Project D.
C. Pick Project C based solely on NPV; other words discontinue additional computation.
D. Pick Project D based on higher IRR than Project C's IRR. E. None of the above.
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