NO.PZ2022090804000022
问题如下：
The incremental after-tax cash flows (in € thousands) and information on two mutually exclusive projects are as follows:
选项：
A.Both projects. B.Project Y only. C.Project X only.解释：
Solution
B is correct. The NPV (in € thousands) and IRR of Project Y are calculated as follows:
Because these projects are mutually exclusive, only one can be undertaken: It should be Project Y, which has the highest NPV and thus increases shareholder wealth the most. Both projects’ IRRs exceed the hurdle rate, and the IRR of Project Y exceeds that of Project X. The decision, however, should be based on the superior NPV of Project Y.
A is incorrect. Both NPVX and NPVY are positive, but because they are mutually exclusive projects, only the one with higher positive NPV will be chosen.
C is incorrect because these projects are mutually exclusive and only one can be undertaken: It should be Project Y, which has the highest NPV and thus increases shareholder wealth the most. Both projects’ IRRs exceed the hurdle rate, and the IRR of Project Y exceeds that of Project X. The decision, however, should be based on the superior NPV of Project Y.
既然两个NPV都大于零 为什么不能投资both呢？
