Project
Q
Project R
Investment
100,000
500,000
IRR
15.5%
12.3%
NPV
$5500.00
$6750.00
Profitability
Index
1.055
1.014
If the projects are mutually exclusive, which one should be
selected? Why?
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Finance
ProjectQ Project R
Investment 100,000 500,000
IRR 15.5% 12.3%
NPV $5500.00 $6750.00
ProfitabilityIndex 1.055 1.014
If the projects are mutually exclusive, which one should beselected? Why?
Answer & Explanation
Solved by verified expert
4.0 Ratings (486 Votes)
Mutually exclusive projects are combination of projects from which only one project can be selected and all other projects are ignored On the basis of IRR the project with higher irr should
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