This is not an option because these projects are mutually exclusive. "Mutually exclusive" means if one project is chosen, the other or others cannot be chosen. An example of mutually exclusive projects is a piece of land on which either a plant or an office building can be constructed, but not both. The controller should recommend Project B because it has the highest net present value. Project B will increase shareholder wealth by more than the other projects because its NPV is higher than the others'. Project C has a higher IRR, but that is probably because the amount of the investment is small. Project C has an NPV of only $15,000, so it is well behind project B in its ability to increase shareholder wealth. All three projects are not an option because these projects are mutually exclusive. "Mutually exclusive" means if one project is chosen, the other or others cannot be chosen. Projects A and B are also not an option for the same reason. This is not an option because these projects are mutually exclusive. "Mutually exclusive" means if one project is chosen, the other or others cannot be chosen. An example of mutually exclusive projects is a piece of land on which either a plant or an office building can be constructed, but not both. Project C does have the highest IRR, but that is probably because the amount of the investment is small. Project C has an NPV of only $15,000, so it is well behind the other projects in its ability to increase shareholder wealth.
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