1. A project has an NPV = $500 while it has a 12% IRR and a Payback Period of 3 years. The required rate of return is 10% and the required Payback Period is 2 years.
rejected on the basis of IRR.
accepted on the basis of NPV.
accepted on the basis of Payback Period.
all of the above
2. Project A has an NPV of $50, Payback Period of 5 years and IRR of 14%. Project B has an NPV of $80, Payback Period of 7 years and IRR of 12%. The projects are mutually exclusive.
Accept A
Accept B
Accept both projects
Reject both projects