Projects C and D Are Mutually Exclusive and Have Normal

question 23

Multiple Choice

Projects C and D are mutually exclusive and have normal cash flows.Project C has a higher NPV if the WACC is less than 12%,whereas Project D has a higher NPV if the WACC exceeds 12%.Which of the following statements is correct?

• A)Project D has a higher IRR.
• B)Project D is probably larger in scale than Project C.
• C)Project C probably has a faster payback.
• D)Project C has a higher IRR.

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Definitions:

Light-Dependent Reactions

The first phase of photosynthesis where light energy is absorbed by chlorophyll and converted into chemical energy for ATP and NADPH production.

ATP Synthase

An enzyme located in the membrane of mitochondria that helps in the synthesis of ATP (adenosine triphosphate) from ADP and phosphate during cellular respiration.

Hydrogen Ions

Positively charged ions of hydrogen, crucial in determining the acidity or alkalinity of solutions.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, typically used for explanation purposes.