Project a Has an Internal Rate of Return (IRR) of 15

question 58

Multiple Choice

Project A has an internal rate of return (IRR) of 15 percent. Project B has an IRR of 14 percent. Both projects have a cost of capital of 12 percent. Which of the following statements is most correct?

• A) Both projects have a positive net present value (NPV).
• B) Project A must have a higher NPV than Project B.
• C) If the cost of capital were less than 12 percent, Project B would have a higher IRR than Project A.
• D) Statements a and c are correct.
• E) Statements a, b, and c are correct.

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Definitions:

Receptor Cells

Specialized cells found in the sense organs (e.g., eyes, ears) that respond to specific stimuli like light, sound, or chemicals and convert them into neural signals.

Neurons

Specialized neurons in the nervous system that convey information to other neurons, muscles, or glands.

Synapse

The junction between two neurons or a neuron and a muscle cell, where impulse transmission occurs through neurotransmitter release.

Ganglia

Clusters of nerve cell bodies, often acting as relay points, located outside the central nervous system.