单选题 The financial manager at Johnson & Smith estimates that its required rate of return is 11 percent. Which of the following independent projects should Johnson & Smith accept? A. Project A requires an up- front expenditure of $1000000 and generates an NPV of -$4600. B. Project B requires an up - front expenditure of $ 600000 and generates a positive internal rate of return of 12.0%. C. Project C requires an up - front expenditure of $100000 and generates a negative IRR of 3.2%.

【正确答案】 B

【答案解析】When projects are independent, you can use either the NPV method or IRR method to make the accept or reject decision. Only Project B has an IRR in excess of 11%. Acceptance of Project A reduces the firm's value by $ 4600.