Project A and Project B are independent projects. Investment life of Project A is 4 years and investment life of Project B is 17 years. Project A's NPV is $375 and Project B's NPV is $1,743. EANPV of project A is $102 and EANPV of project B is $96. Which of the following decision is correct? O a. Select both projects because both have positive NPVs. O b. Select Project A because it has a shorter investment life Oc. Select Project B because it has a longer investment life Select Project A because it has a higher EANPV Oe. Select Project B because it has a higher NPV O d.
Project A and Project B are independent projects. Investment life of Project A is 4 years and investment life of Project B is 17 years. Project A's NPV is $375 and Project B's NPV is $1,743. EANPV of project A is $102 and EANPV of project B is $96. Which of the following decision is correct? O a. Select both projects because both have positive NPVs. O b. Select Project A because it has a shorter investment life Oc. Select Project B because it has a longer investment life Select Project A because it has a higher EANPV Oe. Select Project B because it has a higher NPV O d.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Project A and Project B are independent projects. Investment life of Project A is 4 years
and investment life of Project B is 17 years. Project A's NPV is $375 and Project B's
NPV is $1,743. EANPV of project A is $102 and EANPV of project B is $96. Which of
the following decision is correct?
O a. Select both projects because both have positive NPVs.
O b. Select Project A because it has a shorter investment life
O c. Select Project B because it has a longer investment life
Od. Select Project A because it has a higher EANPV
O e. Select Project B because it has a higher NPV
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