Project J has the same internal rate of return as Project K
Project J has the same internal rate of return as Project K. Which of the following statements is most correct?
A) If the projects have the same size (scale) they will have the same NPV, even if the two projects have different levels of risk.
B) If the two projects have the same risk they will have the same NPV, even if the two projects are of different size.
C) If the projects have the same size (scale) they will have the same discounted payback, even if the two projects have different levels of risk.
D) All of the above are correct.
E) None of the above is correct.
Solution Preview
Statement A is false. The projects could easily have different NPVs based on different cash ...
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