IRR of Normal Project X Is Greater Than the IRR

question 31

True/False

IRR of normal Project X is greater than the IRR of normal Project Y, and both IRRs are greater than zero Also, the NPV of X is greater than the NPV of Y at the cost of capital If the two projects are mutually exclusive, Project X should definitely be selected, and the investment made, provided we have confidence in the data Put another way, it is impossible to draw NPV profiles that would suggest not accepting Project X.

---

Definitions:

Palpatory Method

A technique used in medicine to feel the body with hands to determine the size, consistency, and location of certain body parts or abnormalities.

Korotkoff Sounds

The sounds a doctor listens for when taking blood pressure with a stethoscope and sphygmomanometer, marking the systolic and diastolic pressures.

Systolic Pressure

The blood pressure measured when the left ventricle of the heart contracts.

Diastolic Pressure

The lower number in a blood pressure reading, representing the pressure in the arteries when the heart rests between beats.