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Project Q                      Project R Investment                    100,000                        500,000 IRR                              15.5%                           12.3% NPV                             $5500.00                      $6750.00 Profitability Index         1.055                            1.014 If the projects are mutually exclusive, which one should be selected? Why?

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Finance

ProjectQ                     Project R

Investment                   100,000                       500,000

IRR                            15.5%                          12.3%

NPV                           $5500.00                     $6750.00

ProfitabilityIndex        1.055                           1.014

If the projects are mutually exclusive, which one should beselected? Why?

Answer & Explanation Solved by verified expert
4.0 Ratings (486 Votes)
Mutually exclusive projects are combination of projects from which only one project can be selected and all other projects are ignored On the basis of IRR the project with higher irr should    See Answer
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