Which of the following tool is sustainable for choosing between Mutually exclusive project

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Which of the following tool is sustainable for choosing between Mutually exclusive project
A : NPV
B : IRR
C: MIRR
D; None are sustainable

0

Answer :A;NPV

Explanation to the above answer is as under:

Many methods were used to select the best option when there is between mutually exclusive project Like NPV ,IRR but among all these method NPV is best to choose bec

The  NPV  Method is “a method of ranking investment  project  using the NPV, which is equal to the present value of future net cash flows. it shows that present value of each independent project and among  two  mutually exclusive project which has higher NPV will b e selected.

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