If capital projects are mutually exclusive, which of the following statements is TRUE?
A) Acceptance of one project means the firm will NOT reject the other mutually exclusive projects.
B) The IRR rule still applies as a decision-making process.
C) The profitability index rule will Be inconsistent with the NPV rule when choosing among mutually exclusive projects.
D) All of the above.
ANSWER
B
Place an order in 3 easy steps. Takes less than 5 mins.