Assume project k and project w are mutually exclusive


Consider the following information for projects K and W:

Project K: NPV = $1,500   IRR = 20%

Project W: NPV = $2,500   IRR = 15%

Assume Project K and Project W are mutually exclusive projects with a WACC = 10%. Which of the following is true?

1. Only project k should be entacted since it has the highest IRR

2. Neither project k or w should be enacted since both have a positive NPV

3. Only Project W should be enacted since it has the highest NPV

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Financial Management: Assume project k and project w are mutually exclusive
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