登录之后可查看解析

When it comes to independent projects, financial managers should select all with positive NPVs, resulting in inclusion of Project A and Project B. Remember that projects with positive NPVs will increase the value of the firm. Among mutually exclusive projects, financial managers would select the one with the highest NPV, in this case Project C. Although all projects have positive NPVs, only one of the latter three can be chosen. If the selection were based upon the internal rate of return, Project D would be chosen instead of Project C. This shows why NPV is the superior decision criteria because Project C is the investment that will cause the greatest increase to the value of the firm.