Mulroney Corp

question 64

Multiple Choice

Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,000, and their risks are average for the firm. Project X has an expected life of 2 years with after-tax cash inflows of $5,300 and $7,000 at the end of Years 1 and 2, respectively. Project Y has an expected life of 4 years with after-tax cash inflows of $3,500 at the end of each of the next 4 years. The firm's WACC is 8%. Use the replacement chain to determine the NPV of the most profitable project.

• A) $1,603.52
• B) $1,687.91
• C) $1,772.31
• D) $1,860.92
• E) $1,953.97

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Definitions:

Clock Class

A class provided by some programming languages or libraries that represents and manages dates, times, or timestamps, often used for time measurements or manipulations.

"Is A" Relationship

Describes the inheritant relationship in object-oriented programming where an instance of a subclass can also be considered an instance of the parent class.

Private Methods

Methods within a class that are accessible only by other methods of the same class.

Base Class

A class in object-oriented programming from which other classes, known as derived or child classes, inherit properties and methods.