Two projects are being considered An office building has an IRR of 20 NPV of $100,000 and a payback of 3 years Alternatively a small sandwich shop has an IRR of 40 NPV of $25,000 and a payback of 1 year Which of the two projects should be chosen If projects are mutually exclusive, choose both if projects are independent, choose Sandwich shop If projects are mutually exclusive, choose Office building if projects are independent, choose both If projects are mutually exclusive, choose Sandwich Shop if projects are independent, choose both Do not choose any of the projects under any circumstances If projects are mutually exclusive, choose both if projects are independent, choose Office Building

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Question: Two projects are being considered. An office building has an IRR of 20%; NPV of $100,000 and a payback of 3 years. Alternatively a small

Two projects are being considered. An office building has an IRR of 20%; NPV of $100,000 and a payback of 3 years. Alternatively a small sandwich shop has an IRR of 40%; NPV of $25,000 and a payback of 1 year. Which of the two projects should be chosen?

		If projects are mutually exclusive, choose both; if projects are independent, choose Sandwich shop.
		If projects are mutually exclusive, choose Office building; if projects are independent, choose both.
		If projects are mutually exclusive, choose Sandwich Shop; if projects are independent, choose both.
		Do not choose any of the projects under any circumstances.
		If projects are mutually exclusive, choose both; if projects are independent, choose Office Building.

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