Suppose that MMO is also considering Project B, which would have a NPV of $117,500, and IRR of 27 55 , and a MIRR of 21 20 Assuming that Project A and Project B are mutually exclusive, which of the following statements is correct NPV is the best decision making tool between mutually exclusive projects because it measures the rate of return a project earns Thus, MMO should accept Project B because it has a higher NPV than Project A IRR is the best decision making tool between mutually exclusive projects because it assumes that a projects cash flows can be reinvested at the IRR itself Thus, MMO should accept Project A because its IRR is higher than that of Project B NPV is the best decision making tool between mutually exclusive projects because it measures the dollar amount that a project adds to shareholders wealth Thus, MMO should accept Project B because it has a higher NPV than Project A MIRR is the best decision making tool between mutually exclusive projects because it assumes that a projects cash flows can be reinvested at the WACC Thus, MMO should accept Project A because its MIRR is higher than that of Project B

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Question: Suppose that MMO is also considering Project B, which would have a NPV of $117,500, and IRR of 27.55%, and a MIRR of 21.20%. Assuming

Suppose that MMO is also considering Project B, which would have a NPV of $117,500, and IRR of 27.55%, and a MIRR of 21.20%. Assuming that Project A and Project B are mutually exclusive, which of the following statements is correct?

		NPV is the best decision-making tool between mutually exclusive projects because it measures the rate of return a project earns. Thus, MMO should accept Project B because it has a higher NPV than Project A.
		IRR is the best decision-making tool between mutually exclusive projects because it assumes that a projects cash flows can be reinvested at the IRR itself. Thus, MMO should accept Project A because its IRR is higher than that of Project B.
		NPV is the best decision-making tool between mutually exclusive projects because it measures the dollar amount that a project adds to shareholders wealth. Thus, MMO should accept Project B because it has a higher NPV than Project A.
		MIRR is the best decision-making tool between mutually exclusive projects because it assumes that a projects cash flows can be reinvested at the WACC. Thus, MMO should accept Project A because its MIRR is higher than that of Project B.

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