You are considering two mutually exclusive projects with the following cash ﬂows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent?
A) Accept project A as it always has the higher NPV.
B) Accept project B as it always has the higher NPV.
C) Accept A at 7 percent and B at 10 percent.
D) Accept B at 7 percent and A at 10 percent.
E) Accept A at 7 percent and neither at 10 percent.

Question

You are considering two mutually exclusive projects with the following cash ﬂows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent? 
A) Accept project A as it always has the higher NPV. 
B) Accept project B as it always has the higher NPV. 
C) Accept A at 7 percent and B at 10 percent. 
D) Accept B at 7 percent and A at 10 percent. 
E) Accept A at 7 percent and neither at 10 percent.

Quizplus · Accepted Answer

The Answer of You are considering two mutually exclusive projects with the following cash ﬂows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent? 
A) Accept project A as it always has the higher NPV. 
B) Accept project B as it always has the higher NPV. 
C) Accept A at 7 percent and B at 10 percent. 
D) Accept B at 7 percent and A at 10 percent. 
E) Accept A at 7 percent and neither at 10 percent.

You Are Considering Two Mutually Exclusive Projects with the Following