Project a and B Have 4 Year Timelines

question 199

Multiple Choice

Project A and B have 4 year timelines. Project A has an initial investment of $100,000 and cash inflows of $60,000, $50,000 $40,000 and $40,000. Project B has an initial investment of $75,000
And cash inflows of $50,000, $40,000, $30,000 and $30,000. At what rate of interest would a
Company be indifferent at choosing project A or B?

• A) 17.95%
• B) 19.01%
• C) 21.86%
• D) 23.88%
• E) 24.44%

---

Definitions:

Temperament

A person's or animal's nature, especially as it permanently affects their behavior.

Highly Reactive Temperament

A personality trait marked by a high response to environmental stimuli, including emotional, somatic, and sensory sensitivities.

Unpredictable

Characterized by being unable to be foreseen or expected, often leading to uncertainty or surprise.

Political Attitudes

Individual or collective opinions, beliefs, and values about political issues, personalities, and systems.