Project a Has a Cost of $300 and a Three

question 125

Multiple Choice

Project A has a cost of $300 and a three year annual cash flow of $100, $200 and $300. Project B has a cost of $400 and a three year annual cash flow of $185, $215 and $315. Given this information, calculate the IRR cross-over rate.

• A) 6.77%
• B) 7.77%
• C) 8.77%
• D) 9.77%
• E) 10.77%

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Definitions:

Deontology

An ethical theory that suggests actions are morally right or wrong based on a set of rules, rather than the consequences of the actions.

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives considered either right (ethical) or wrong (unethical).

Framework For Ethics

A structured set of guidelines or principles designed to help individuals or organizations make ethical decisions.

Electronic Devices

Gadgets or mechanisms that use electricity to perform a wide range of functions, from computing to communication.