Question
Quantity 1: A car travels from City A to City B, a
distance of 240 km, at a speed of 60 km/h. find the total time taken. Quantity 2: The time taken to return from City B to City A at a speed of 80 km/h. find the taken time.Solution
Quantity 1: Time to travel to City B = 240 km / 60 km/h = 4 hours. Quantity 2: Time to return = 240 km / 80 km/h = 3 hours. Thus, Quantity 1 > Quantity 2. Answer: a) Quantity 1 > Quantity 2
In case of mutually exclusive projects and when NPV and IRR giving conflicting results, go for the project having higher IRR
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