如题

问题如下：

When evaluating mutually exclusive projects, the correct approach an analyst should follow is to:

选项：

A.

select the project with the highest return on invested capital (ROIC).

B.

apply the hurdle rate as the discount rate.

C.

choose the project with the IRR above the project's cost of capital.

解释：

A is incorrect because the return on invested capital (ROIC) measures a company's efficiency at allocating the capital under its control to profitable investments, but it does not directly guide which of two mutually exclusive projects should be selected based on their future cash flows and required returns​​.

B is correct. Using the opportunity cost of funds, also known as the hurdle rate or the project's cost of capital, as the discount rate is the appropriate method for analyzing mutually exclusive projects. This approach ensures that the selected project exceeds the company's minimum required return, aligning with the principle that investments should be made based on their ability to exceed the cost of capital​​.

C is incorrect because while the internal rate of return (IRR) is an important metric for assessing project viability, the decision rule based solely on IRR may not always be appropriate for mutually exclusive projects. The NPV method, which directly considers the opportunity cost of capital, is generally preferred for its ability to maximize shareholder value​​.