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Author Question: Canada Corp.s management has determined that two mutually exclusive projects have the following ... (Read 133 times)

jrobl3

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Canada Corp.’s management has determined that two mutually exclusive projects have the following NPVs:
Project A NPV $7,000
Project B NPV $8,000

 

Which best describes the correct managerial decision given the information above?


Reject both projects since both projects must have an NPV greater than $15,000.


Accept both projects since the NPV of A and B can maximize the firm’s value.


Accept B and reject A since B has a higher NPV than A.


Accept A and decline B since A has greater growth potential.



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Marked as best answer by jrobl3 on Aug 7, 2023

bmac98

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jrobl3

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


nguyenhoanhat

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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