You are considering two mutually exclusive projects. Based upon risk, the appropriate discount rate for both projects is 10%. The first project has an IRR of 22% and an NPV of $22,432. The second project has an IRR of 12% and an NPV of $24,456. Which project should you select?
accept both projects since both are acceptable.
pick the project with the shorter payback period.
choose the project with the higher NPV.
unable to determine due to insufficient information.
choose the project with the higher IRR.
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