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

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 %? What if the discount rate is 10 %? 
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 % and B at 10 %. 
D) Accept B at 7 % and A at 10 %. 
E) Accept A at 7 % and neither at 10 %.

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 %? What if the discount rate is 10 %? 
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 % and B at 10 %. 
D) Accept B at 7 % and A at 10 %. 
E) Accept A at 7 % and neither at 10 %.

You Are Considering Two Mutually Exclusive Projects with the Following