Question

Project A has NPV ₹8 lakh, IRR 15%. Project B has NPV ₹6 lakh, IRR 17%. If cost of capital is 12%, and projects are mutually exclusive, which should be chosen?

A Project B because of higher IRR
B Project A due to higher NPV
C Reject both projects
D Choose project with shorter payback
E None of these
Practice Next

Relevant for Exams:

Hey! Ask a query