Consider Projects S and L

question 73

Multiple Choice

Consider projects S and L.Both have normal cash flows, and the projects have the same risk, hence both are evaluated with the same cost of capital, 10%.However, S has a higher IRR than L.Which of the following statements is CORRECT?

• A) If Project S has a positive NPV, Project L must also have a positive NPV.
• B) If the cost of capital falls, each project's IRR will increase.
• C) If the cost of capital increases, each project's IRR will decrease.
• D) If Projects S and L have the same NPV at the current cost of capital, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the cost of capital used to evaluate the projects declined.
• E) Project S must have a higher NPV than Project L.

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Definitions:

Analyze Data

The method of inspecting, purifying, modifying, and analyzing data to uncover valuable insights, draw conclusions, and aid in making decisions.

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The use of data analytics, algorithms, and other technologies to identify potential criminal activity and allocate police resources accordingly.

Data Mining

Extraction of useful information and patterns from vast amounts of data through various analytical techniques.

Computer Forensics

The process of collecting, analyzing, and preserving electronic data to be used as evidence in legal proceedings, often related to crimes involving digital devices.