If two projects offer the same positive NPV,then they:
A) also have the same IRR.
B) have the same payback period.
C) are mutually exclusive projects.
D) add the same amount of value to the firm.

Question

Quizplus · Accepted Answer

If two projects have the same positive NPV, it means that both projects will add the same amount of value to the firm. The IRR and payback period may be different for each project, but those metrics are not indicative of the total value added to the firm. Mutually exclusive projects are those where the acceptance of one project precludes the acceptance of the other project, which is not necessarily the case here. Therefore, the correct answer is D.

If Two Projects Offer the Same Positive NPV,then They