In an Assessment of the Internal Rate of Return (R)

question 13

Multiple Choice

In an assessment of the internal rate of return (r) of two projects the following results are obtained: r is 8% for Project A and 12% for Project B. What decisions should be followed if the opportunity cost of capital is 10%?

• A) Accept A and reject B
• B) Reject A and accept B
• C) Reject both projects
• D) Accept both projects

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Definitions:

Nonprofit Organizations

Entities dedicated to furthering a particular social cause or advocating for a shared point of interest without intent to distribute profits to members.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

Increased Revenue

The growth in the total amount of money earned or received by an organization, typically as a result of enhanced sales or services.

Improved Programs

Initiatives or projects that have been enhanced in terms of efficiency, effectiveness, reach, or quality, often through feedback, innovation, or additional resources.