Project X Has an Internal Rate of Return of 20

question 18

Multiple Choice

Project X has an internal rate of return of 20 percent. Project Y has an internal rate of return of 15 percent. Both projects have a positive net present value. Which of the following statements is most correct?

• A) Project X must have a higher net present value than Project Y.
• B) If the two projects have the same WACC, Project X must have a higher net present value.
• C) Project X must have a shorter payback than Project Y.
• D) Both answers b and c are correct.
• E) None of the above answers is correct.

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Definitions:

Dependent

Relying on someone or something else for support, maintenance, or supply.

Guard Against

To protect oneself or something from possible danger, harm, or adverse effects.

Take Professionally

Adopting a serious and committed approach towards one's career or work responsibilities.

Difficult People

Difficult People are individuals whose behavior or personality traits make interactions challenging and often lead to conflict or stress.