Use the information for the question(s)below.

-If WiseGuy Inc is choosing one of the above mutually exclusive projects (Project A or Project B),given a discount rate of 8%,which should the company choose?
A)Project A
B)Project B
C)Neither project - both have negative NPV.
D)Both projects - both have positive NPV.

Question

Use the information for the question(s)below.
 
-If WiseGuy Inc is choosing one of the above mutually exclusive projects (Project A or Project B),given a discount rate of 8%,which should the company choose?
A)Project A 
B)Project B 
C)Neither project - both have negative NPV. 
D)Both projects - both have positive NPV.

Quizplus · Accepted Answer

Project B should be chosen if it has a higher NPV than Project A at the given discount rate of 8%.

Use the Information for the Question(s)below