Question: Suppose Deak Inc. has two mutually eaclusive projects. The IRR of project A is 2 0 % and of project B fisen. The NPV of
Suppose Deak Inc. has two mutually eaclusive projects. The IRR of project is and of project fisen. The NPV of project A equals that of project B at a discount rate. Assuming positive discount rates, which of the following is correct?
a The firm will always accept project B for discount rates Erater than
b The firm will always prefer project A over B for discount rates less than G
c The firm will always prefer project B over A fordiscount rates liess than
d The firm will always accept both project as their IRRs are both greater than
The firm will always prefer project B over A because Bs IRR is higher than that of A
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