Use the Table for the Question(s)below

question 65

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-Assume that projects Alpha and Beta are mutually exclusive.Which of the following statements is true regarding the investment decision tools' suitability for deciding between projects Alpha & Beta?

• A)The incremental IRR should not be used since the projects have different lives.
• B)The incremental IRR should not be used since the projects have different discount rates.
• C)The incremental IRR should not be used since the projects have different cash flow patterns.
• D)Both the NPV and incremental IRR approaches are appropriate to solve this problem.

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Definitions:

Computer-Assisted Instruction

An educational method that uses computer software and hardware as a means to deliver instructional material and activities.

Evaluation Tool

An instrument or methodology utilized to assess or measure performance, skills, knowledge, or outcomes.

Retention

The ability to keep, hold, or maintain something over time, such as information in memory or employees in a company.

Client Behavior

The actions or reactions of a client in the context of a professional relationship or service.