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The AAA company has potential investment projects X and Y. These are mutually exclusive projects. Project X has a net present value (NPV) of...

The AAA company has potential investment projects X and Y. These are mutually exclusive projects.

Project X has a net present value (NPV) of +$500,000 and an internal rate of return (IRR) of 16%.

Project Y has a net present value (NPV) of +$240,000 and an internal rate of return (IRR) of 24%.

The correct decision for the company is to _____.

accept only project X

accept only project Y

accept project X and accept project Y

reject project X and reject project Y

Top Answer

accept only project X This is because it has a more positive net present value compared to the project Y. A... View the full answer

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