Use the Table for the Question(s)below

question 55

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.The correct investment decision and the best rationale for that decision is to:

• A)invest in project Beta since NPVBeta > 0.
• B)invest in project Alpha since NPVBeta < NPVAlpha.
• C)invest in project Beta since IRRB > IRRA.
• D)invest in project Beta since NPVBeta > NPVAlpha > 0.

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Definitions:

Statistics

The branch of mathematics dealing with data collection, analysis, interpretation, and presentation.

Correlated

A statistical relationship indicating that two variables move in relation to each other, either positively or negatively.

Relationship

How two or more entities, things, or persons relate to each other, or their state of linkage.

Predict

To declare or indicate an event, condition, or result in the future, typically based on observation, experience, or scientific reasoning.