When projects are mutually exclusive,you should choose the project with the:
A) longer life.
B) larger initial size.
C) highest IRR.
D) highest NPV.

Question

Quizplus · Accepted Answer

The best choice in mutually exclusive projects is the one with the highest NPV as it represents the higher increase in shareholder wealth or value creation. The NPV takes into consideration the time value of money and measures the difference between the project's present value of inflows and the present value of outflows. The higher the NPV, the more profitable the project is. Therefore, choosing the project with the highest NPV is the best alternative.

When Projects Are Mutually Exclusive,you Should Choose the Project with The