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BlackZzzverrR [31]
3 years ago
12

When choosing between mutually exclusive projects, what is the best method to use?

Business
1 answer:
KIM [24]3 years ago
7 0

Answer:

Option C. The highest NPV is always the best option.

Explanation:

The reason is that IRR assumes that the reinvestment rate is also at IRR which is not a realistic assumption. The Net Present Value resolves this as it assumes that the reinvestment rate is cost of capital and hence is more better than IRR to appraise the project.

The decision rule in the Net present value method is that the project which has higher positive Net present value is regarded as best project among two mutually exclusive projects.

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Answer:

True.

Explanation:

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Hence, an innovation and enterprise can help to develop new and niche markets as the business would be starting afresh and offering new products and services to meet the unending needs or requirements of its customers.

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Answer:

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