Page 1 of 1

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

Posted: Sat Feb 26, 2022 9:04 am
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.