Jack Smith, CFA, is analyzing independent

问题单项选择题

Jack Smith, CFA, is analyzing independent investment projects X and Y. Smith has calculated the net present value (NPV) and internal rate of return (IRR) for each project: Project X: NPV=$250; IRR=15% Project Y: NPV=$5000; IRR=8% Smith should make which of the following recommendations concerning the two projects Project X Project Y（）①A. Accept Accept ②B. Accept Reject ③C. Reject Accept

A. ①

B. ②

C. ③

答案

参考答案：A

解析：

The projects are independent, meaning that either one or both projects may be chosen. Both projects have positive NPVs, therefore both projects add to shareholder wealth and both projects should be accepted.