Alberta Inc. is considering investing in two projects, each of which has an initial investment...
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Accounting
Alberta Inc. is considering investing in two projects, each of which has an initial investment requirement of $ Both A and B are "normal" risk for the company. A has a net present value of $ B has a net present value of $
Question options:
B is better than A because of the risk.
A is better than B because it has a higher net present value and the same risk level.
None of the answers provided
There is insufficient information to make a rational choice between A and B
A and B are equally valuable.
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