You Are Considering the Following Two Mutually Exclusive Projects That $11.25 \%$

question 106

Multiple Choice

You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is $11.25 \%$ for project $A$ and $10.75 \%$ for project $B$ . Which project should you accept and why?

• A)project A; because its NPV is about £335 more than the NPV of project B.
• B)project A; because it has the higher required rate of return.
• C)project B; because it has the largest total cash inflow.
• D)project B; because it returns all its cash flows within two years.
• E)project B; because it is the largest sized project.

---

Definitions:

Mid-Life Crisis

A period of emotional turmoil in middle age characterized by a strong desire for change in career, relationships, or self-identity.

College Graduate

An individual who has successfully completed a degree program at a college or university.

Assisted Living

A residential option for elderly or disabled people who need help with daily tasks but do not require the full-time healthcare provided in a nursing home.

Family as Context

Considering the family's influence on an individual's health, behaviors, and attitudes as an important factor in understanding and treating health issues.