higher net present value
lower net present value
zero net present value
all of above
Answer is Right!
Answer is Wrong!
The correct answer is A. higher net present value.
Mutually exclusive projects are projects that cannot be undertaken simultaneously because they are competing for the same resources. When evaluating mutually exclusive projects, the project with the highest net present value (NPV) should be selected. This is because NPV is a measure of the project’s profitability, and the project with the highest NPV will generate the most profit for the company.
Option B is incorrect because a project with a lower NPV will generate less profit for the company than a project with a higher NPV. Option C is incorrect because a project with a zero NPV will not generate any profit for the company. Option D is incorrect because only option A is correct.