A company has hired a consultant to propose a way to increase the company’s revenues. The consultant has evaluated two mutually exclusive projects with me following information provided for each project.

A company has hired a consultant to propose a way to increase the company’s revenues. The consultant has evaluated two mutually exclusive projects with me following information provided for each project.

The company uses a discount rate of 9% to evaluate both projects.

Based on the net present value, the company should invest in
A . project A only
B. project B only
C. project A and project B
D. neither project

View Answer

Answer: A