Kizspy | Question: 11
(Choose 1 answer)
A construction firm is evaluating two value-adding projects. The first project deals with building access roads
to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the
hiring firm owns adjacent to the airport.
If both projects are positive-NPV projects, then the firm should:
A. accept both projects because they are independent projects.
B. select the higher NPV project because they are mutually exclusive.
C. accept both projects because they are contingent projects.
D. Not enough information is given to make a decision.
