John has to choose between Project A and Project B, which are mutually exclusive. Project A has an initial cost of $30,0

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answerhappygod
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John has to choose between Project A and Project B, which are mutually exclusive. Project A has an initial cost of $30,0

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John has to choose between Project A and Project B, which are
mutually exclusive. Project A has an initial cost of $30,000 and an
internal rate of return of 16 percent. Project B has an initial
cost of $49,000 and an internal rate of return of 12 percent.
Explain why the selection of the project with the higher internal
rate of return could be a faulty decision.
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