When comparing projects using the total project approach,a manager should choose the project with the ________.
A) smallest net present value
B) largest net present value
C) zero net present value
D) largest differential net present value

Question

Quizplus · Accepted Answer

When using the total project approach, the manager should choose the project with the largest net present value as it indicates the project is expected to generate the highest return on investment. Choosing a project with a smaller net present value would result in a lower return on investment, while a project with a zero net present value would not provide any return at all. The differential net present value is not relevant when comparing projects using the total project approach.

When Comparing Projects Using the Total Project Approach,a Manager Should