You Are Considering the Following Two Mutually Exclusive Projects

question 24

Multiple Choice

You are considering the following two mutually exclusive projects.The required return on each project is 12 percent.Which project should you accept and what is the best reason for that decision?

• A)Project A, because it pays back faster
• B)Project A, because it has the higher internal rate of return
• C)Project B, because it has the higher internal rate of return
• D)Project A, because it has the higher net present value
• E)Project B, because it has the higher net present value

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Definitions:

Justify Actions

The process of providing reasons or explanations for one's behavior in a manner that depicts it as reasonable or necessary.

Emotional Infidelity

Forming a deep emotional connection with someone other than one's partner, which can threaten the primary relationship.

Sexual Infidelity

Engaging in sexual activity with someone other than one's spouse or partner, thus violating the norms or agreements of the relationship.

Arranged Marriages

Marriages in which the spouses are chosen by parents, family members, or matchmakers rather than by each other.