Projects S and L Are Equally Risky,mutually Exclusive,and Have Normal

question 114

Multiple Choice

Projects S and L are equally risky,mutually exclusive,and have normal cash flows.Project S has an IRR of 15%,while Project L's IRR is 12%.The two projects have the same NPV when the WACC is 7%.Which of the following statements is correct?

• A)If the WACC is 10%, both projects will have positive NPVs.
• B)If the WACC is 6%, Project S will have the higher NPV.
• C)If the WACC is 13%, Project S will have the lower NPV.
• D)If the WACC is 10%, both projects will have a negative NPV.

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Definitions:

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to its ability to adapt to changing environments.

Crossing Over

The process during meiosis where two chromosomes pair up and exchange segments of their genetic material to produce new combinations of genes.

Homologous Chromosomes

Pairs of chromosomes that contain the same types of genes but can have different alleles.

Sister Chromatids

They are identical copies of a single chromosome that are connected by a centromere. Sister chromatids are formed during DNA replication and are important for the process of cell division.