The IRR of Normal Project X Is Greater Than the IRR

question 47

True/False

The IRR of normal Project X is greater than the IRR of normal Project Y, and both IRRs are greater than zero.Also, the NPV of X is greater than the NPV of Y at the cost of capital.If the two projects are mutually exclusive, Project X should definitely be selected, and the investment made, provided we have confidence in the data.Put another way, it is impossible to draw NPV profiles that would suggest not accepting Project X.

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Definitions:

Abstinence

The act of refraining from engaging in certain behaviors or consuming substances, such as alcohol or drugs.

First Year

The initial period or the beginning phase of an event, process, or institution, often implying a time of learning or adjustment.

High Risk Situations

Circumstances that significantly increase the likelihood of a negative outcome, such as relapse in substance abuse contexts or dangerous behavior.

Relapse Prevention Therapy

A behavioral strategy used in the treatment of addiction and other problematic behaviors, focused on identifying and managing high-risk situations to prevent relapse.