Suppose project A has zero NPV and project B has negative NPV. Now if the prevailing interest rate goes up, which projec

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answerhappygod
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Suppose project A has zero NPV and project B has negative NPV. Now if the prevailing interest rate goes up, which projec

Post by answerhappygod »

Suppose project A has zero NPV and project B has negative NPV.
Now if the prevailing interest rate goes up, which project(s) shall
we take according to NPV capital budgeting rule?
(a) Take A only. (b) Take both A and B. (c) Take B only. (d)
Neither one of the two.
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