You are considering the following two mutually exclusive projects.Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project.Neither project has any salvage value. Should you accept or reject these projects based on net present value analysis?
A)accept Project A and reject Project B
B)reject Project A and accept Project B
C)accept both Projects A and B
D)reject both Projects A and B
E)You cannot make this decision based on net present value analysis.

Question

You are considering the following two mutually exclusive projects.Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project.Neither project has any salvage value.  Should you accept or reject these projects based on net present value analysis?
A)accept Project A and reject Project B 
B)reject Project A and accept Project B 
C)accept both Projects A and B 
D)reject both Projects A and B 
E)You cannot make this decision based on net present value analysis.

Quizplus · Accepted Answer

The Answer of You are considering the following two mutually exclusive projects.Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project.Neither project has any salvage value.  Should you accept or reject these projects based on net present value analysis?
A)accept Project A and reject Project B 
B)reject Project A and accept Project B 
C)accept both Projects A and B 
D)reject both Projects A and B 
E)You cannot make this decision based on net present value analysis.

You Are Considering the Following Two Mutually Exclusive Projects