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). 8. 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.

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). 8. 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.

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Description: 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 12percent. Which of the following statements is most correct? (Assume the projects are not mutually exclusive.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 16MCQ: Using IRR, a project is rejected if the IRR a. is equal to the required rate of return. b. is less...

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