Use the Table for the Question(s)below

question 18

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The maximum number of incremental IRRs that could exist for project B over project A is:

• A)1.
• B)2.
• C)0.
• D)3.

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Definitions:

Corrective Tax

Levies imposed to address and ameliorate the negative externalities generated by certain economic activities, thereby realigning social and private costs.

Subsidy

A financial contribution granted by the government or a public body to support businesses, reduce the price of commodities, or encourage activities beneficial to the public interest.

Equilibrium Number

When market demand equals supply, leading to stability in prices.

Pollution Permits

Licenses that allow the holder to emit a specific amount of pollutants into the environment, used in regulatory strategies to reduce pollution.