Question: Rustic Cabins Inc. has identified two profitable mutually exclusive projects. Both projects have an initial cost of $235.000; project A has an IRR of 21.50%
Rustic Cabins Inc. has identified two profitable mutually exclusive projects. Both projects have an initial cost of $235.000; project A has an IRR of 21.50% and a NPV of $45,692.99 while project B has an IRR of 19,58% and a NPV of $47.234.56. If the goal is to maximize the value of the firm, which project should they choose? Project B Indifferent, both projects are profitable Project A I don't have enough information to decide
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