A financial manager is evaluating several mutually exclusive investment opportunities. These projects have already gone through an initial screening process and are all deemed to be positive NPV projects. When choosing which project(s) to accept, the manager should follow which of the following procedures?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 12P
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A financial manager is evaluating several mutually exclusive investment
opportunities. These projects have already gone through an initial screening
process and are all deemed to be positive NPV projects.
When choosing which project(s) to accept, the manager should follow which of
the following procedures?
O A. She should choose the project with the shortest Payback Period.
O B. She should choose the project with the lowest Internal Rate of Return
(IRR).
O C. She should choose the project with the highest Net Present Value
(NPV).
O D. She should choose the project with the highest Internal Rate of Return
(IRR).
O E. Since these projects are all positive NPV, the manager should accept all
of them.
Transcribed Image Text:A financial manager is evaluating several mutually exclusive investment opportunities. These projects have already gone through an initial screening process and are all deemed to be positive NPV projects. When choosing which project(s) to accept, the manager should follow which of the following procedures? O A. She should choose the project with the shortest Payback Period. O B. She should choose the project with the lowest Internal Rate of Return (IRR). O C. She should choose the project with the highest Net Present Value (NPV). O D. She should choose the project with the highest Internal Rate of Return (IRR). O E. Since these projects are all positive NPV, the manager should accept all of them.
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