Consider Two Mutually Exclusive Projects a & B

question 9

Multiple Choice

Consider two mutually exclusive projects A & B.If you subtract the cash flows of opportunity B from the cash flows of opportunity A,then you should:

• A)take opportunity A if the regular IRR exceeds the cost of capital.
• B)take opportunity A if the incremental IRR exceeds the cost of capital.
• C)take opportunity B if the regular IRR exceeds the cost of capital.
• D)take opportunity B if the incremental IRR exceeds the cost of capital.

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Definitions:

Reasonably Informed

A standard describing a person who has access to and understands basic information relevant to the issues or decisions at hand.

Attorney's Duty

The obligations and ethical responsibilities an attorney has towards their clients, the court, and the legal system.

Employee Performance Evaluation

Employee performance evaluation is a systematic process of assessing and documenting an employee's job performance and providing feedback to the employee.

Paralegal Employee

A professional employed by a law firm, corporation, or government agency to perform paralegal tasks and assist lawyers, distinguished from freelance or contract paralegals.