Swenson's Is Considering Two Mutually Exclusive Projects, Projects a and B

question 33

Multiple Choice

Swenson's is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent. Given this you know that: 

• A) neither project will be accepted if the discount rate is less than 11.7 percent. 
• B) both projects have a negative NPV at discount rates greater than 11.7 percent. 
• C) both projects provide an internal rate of return of 11.7 percent. 
• D) both projects have a zero NPV at a discount rate of 11.7 percent. 
• E) the project that is acceptable at a discount rate of 11 percent should be rejected at a discount rate of 12 percent. 

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Definitions:

Implicit Memory

A type of memory that enables individuals to perform tasks without conscious awareness of these previous experiences.

Explicit Memory

The type of long-term memory that involves conscious recollection of facts and experiences.

Neural Activity

The electrical and chemical processes within neurons that allow the brain and nervous system to function.

Neurons

Specialized cells transmitting nerve impulses; the basic building blocks of the nervous system.