An investor is considering the two investments shown above.Her cost of capital is 9%.Which of the following statements about these investments is true?
A) The investor should take investment A since it has a greater net present value (NPV) .
B) The investor should take investment A since it has a greater internal rate of return (IRR) .
C) The investor should take investment B since it has a greater net present value (NPV) .
D) The investor should take investment B since it has a greater internal rate of return (IRR) .
E) The investor should take investment B since it has a shorter payback period.
Correct Answer:
Verified
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