Suppose Projects Mars and Venus Are Mutually Exclusive

question 132

Multiple Choice

Suppose projects Mars and Venus are mutually exclusive.Project Mars has an IRR of 10% and project Venus has an IRR of 20%.One can then conclude that:

• A)project Venus must always be preferred to Mars.
• B)project Mars must always be preferred to Venus.
• C)project Mars has a negative NPV while project Venus has a positive NPV.
• D)it is impossible to rank the two projects without further information about the timing and amounts of the cash flows.

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Definitions:

Delphi Technique

The Delphi Technique is a structured communication method used for systematic interactive forecasting by experts of the likelihood and outcome of future events.

Production Levels

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Customers

Individuals or entities that purchase goods or services from a business, forming the basis of the business's income.

Policies

Guidelines or rules established by organizations to govern their operations, behaviors, and decisions.