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.

---

Definitions:

Homeostasis

The regulation of internal conditions within an organism to maintain a stable, constant environment despite external changes.

Biological System

An organized group of organs and structures that work together to perform a specific function or task in a living organism, such as the nervous system or respiratory system.

Optimal Level

The most favorable point, degree, or amount of something for a particular situation or condition, resulting in the best possible outcome.

Suprachiasmatic Nucleus

A region in the brain, located in the hypothalamus, responsible for controlling circadian rhythms.