If you require a 15% return, which investment should you choose?

Posted by: Pdfprep Category: GLO_CWM_LVL_1 Tags: , ,

You have a choice between 2 mutually exclusive investments.

If you require a 15% return, which investment should you choose?
A . Project A, because it has a smaller initial investment
B . Project B, because it has a higher NPV
C . Project A, because it has the higher internal rate of return
D . Either one, because they have the same profitability indexes

Answer: B