Question:medium

If two projects have the same PVB but Project A has a higher IRR than Project B, what is the usual recommendation when capital is limited?

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For capital-constrained projects, \[ \boxed{ \text{Higher IRR} \Rightarrow \text{Higher return per unit investment}. } \]

Updated On: Jul 14, 2026

Choose the project with the higher NPV regardless of IRR
Choose the project with the higher IRR
Always choose the project with a longer life
Reject both projects

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The Correct Option is B

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