If two projects are mutually exclusive we should accept the


Which of the following statements is most correct?

A. If two projects are mutually exclusive, we should accept the project with long payback period and reject the project with short payback period.

B. If decision with internal rate of return (IRR) is conflicting with decision with net present value (NPV), we should follow NPV.

C. If Project A has a higher IRR than Project B, then Project A must also have a higher NPV.

D. Answers a and b are correct.

E.  Answers a and c are correct.

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Financial Management: If two projects are mutually exclusive we should accept the
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