Projects a and B Are Mutually Exclusive

question 106

Multiple Choice

Projects A and B are mutually exclusive. Project A costs $20,000 and is expected to generate cash inflows of $7,500 for 4 years. Project B costs $10,000 and is expected to generate a single cash flow in year 4 of $20,000. The cost of capital is 12%. Which project would you accept and why?

• A) Project B because it has the higher NPV
• B) Project B because it has the higher IRR
• C) Project A because it has the higher NPV
• D) Project A because it has the higher IRR

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Definitions:

Organelles

Specialized structures within a cell that perform specific functions, like mitochondria, ribosomes, and the endoplasmic reticulum.

Cytogel

A term not widely recognized in scientific literature, potentially referring to a gel-like substance within cells; however, specific context is needed for accurate definition.

Columnar Cells

Elongated epithelial cells resembling columns, often found lining the gut, respiratory tract, and glands, and involved in absorption, secretion, and protection.

Red Blood Cells

Red blood cells, also known as erythrocytes, are cells that carry oxygen from the lungs to body tissues and carbon dioxide back to the lungs for exhalation, crucial for maintaining life.