The following information on two mutually exclusive projects is given below: Which of the following statements is correct?
(a) Since the two projects have the same rate of return, they are indifferent.
(b) Project A would be a better choice, as the required investment is smaller with the same rate of return.
(c) Project B would be a better choice as long as the investor's MARR is less than 25%.
(d) Project B is a better choice regardless of the investor's MARR.

Question

The following information on two mutually exclusive projects is given below:  Which of the following statements is correct?
(a) Since the two projects have the same rate of return, they are indifferent.
(b) Project A would be a better choice, as the required investment is smaller with the same rate of return.
(c) Project B would be a better choice as long as the investor's MARR is less than 25%.
(d) Project B is a better choice regardless of the investor's MARR.

Quizplus · Accepted Answer

The Answer of The following information on two mutually exclusive projects is given below:  Which of the following statements is correct?
(a) Since the two projects have the same rate of return, they are indifferent.
(b) Project A would be a better choice, as the required investment is smaller with the same rate of return.
(c) Project B would be a better choice as long as the investor's MARR is less than 25%.
(d) Project B is a better choice regardless of the investor's MARR.

The Following Information on Two Mutually Exclusive Projects Is Given