Brighter Investment has a NPV of $50,000 and Apogee Investment has a NPV of $40,000.Which of the following circumstances could make it possible to choose December over January?

Question

Quizplus · Accepted Answer

If the projects have unequal lives, it may be possible to choose December over January if the difference in NPV is not substantial and the December project has a shorter life. This would result in a higher overall return for the same investment period. However, if the projects have equal lives, choosing the one with the higher NPV would be the best option. Option A is not necessarily a factor in choosing between the two projects, and options B and D do not provide enough information to make a decision.

Brighter Investment Has a NPV of $50,000 and Apogee Investment