Question: Sundial Corp is evaluating two mutually exclusive projects. The Stone sundial project has a Net Present Value of $123 million and an Internal Rate of

Sundial Corp is evaluating two mutually exclusive projects. The Stone sundial project has a Net Present Value of $123 million and an Internal Rate of Return of 11%. The Plastic sundial project has a Net Present Value of $87 million and an Internal Rate of Return of 12.5%. Given these projects are mutually exclusive and Sundial has a cost of capital of 9%, what should Sundial do?

Group of answer choices

Invest in the Stone sundial project.

Close down their business as they have no good investment opportunities.

Invest in the Plastic sundial project.

Do not invest in either project.

Invest in both projects.

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