Two projects have an identical "Net Present Value' of $9,000. Are both projects equal in desirability?
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- Explain whether two competing, alternate capital projects are equally desireable if they both generate a positive NPV of $2,000, when using the the Net Present Value method to evaluate the projects.Projects A and B are mutually exclusive. If project A, the larger project, has an approximate ERR of 20 percent and project B has an approximate ERR of 13 percent, which project is better if MARR=10 percent? O A The incremental ERR method is required to determine the better project. Neither A nor B is valid. B * For our purposes, a project is valid if its internal rate of return (IRR) is less than MARR. equal to or larger than MARR. less than 0 percent. larger than MARR.Project A has an internal rate of return (IRR) of 15 percent. Project B has an IRR of 14 percent. Both projects have a required return of 12 percent. Which of the following statements is most correct? (Assume the projects are not mutually exclusive.) OA. Both projects have a negative net present value (NPV). OB. Both projects should be accepted because the IRR is greater than the required return. OC. If the required return were less than 12 percent. Project 8 would have a higher IRR than Project A OD. Both projects should be rejected.
- Company A has an NPV (Net Present Value) of $10,000 for a proposed project, while Company B has a NPV of $5,000 for a different project. Which project is more financially attractive? A. It cannot be determined from the information given B. Company A's project C. Company B's project D. Both projects are equally attractiveConsider three investment projects: A1, A2, and A3. Each project has the same service life, and the present worth of each component value (B, I, and C') is computed at 10% as follows: (a) If all three projects are independent, which projects would be selected, based on BC(i)?(b) If the three projects are mutually exclusive, which project would be the best alternative? Show the sequence of calculations that would be required in order to produce the correct results. Use the B/C ratio on incremental investment.Under what conditions might you find more thanone IRR for a project? How would you decidewhether or not to accept the project? If you werecomparing two mutually exclusive projects, onewith a single IRR of 12% and the other with two different IRRs of 10% and 15%, how should youchoose between the projects?
- Using the net present value method, the present value of cash inflows for Project A is P44,000 and the present value of cash inflows of Project B is P24,000. If Project A and Project B require initial investments of P40,000 and P20,000, respectively, and have the same useful life, what is the project that should be accepted assuming the projects are mutually exclusive projects?Given the net present value (NPV) of Project A is -$500,000, Project B is $200,000 and Project C is $250,000. Which of the project(s) can be accepted?If the net present value (NPV) of project A is + $200, and that of project B is + $80, then the net present value of the combined project is: +$80 0 +$280 +$200
- Project A has an IRR of 25% and an NPV of $2 million. Project B has an IRR of 20% and an NPV of $3 million. Select all the following statements that are true. Group of answer choices If the projects are mutually exclusive, select project A only If the projects are mutually exclusive, select project B only If the projects are mutually exclusive, select both projects If the projects are independent, select project A only If the projects are independent, select project B only If the projects are independent, select both projectsIf the net present value of A is +$60 and of B is +$30, then what is the net present value of the combined project?Assume that there are two competing projects, A and B. Project A has an NPV of $1,000 and an IRR of 15%. Project B has an NPV of $800 and an IRR of 20%. Which of the following is true? Project A should be chosen because it has a higher NPV Project B should be chosen because it has a higher IRR It is not possible to us NPV or IRR to choose between the two projects Neither projects should be chosen All of these