A Firm Has to Choose Between Projects X and Y

question 53

Multiple Choice

A firm has to choose between projects X and Y.Project X's internal rate of return is positive.If the cash flow of project Y is discounted at project X's internal rate of return,this firm will

• A) choose project X if the net present value of project Y is positive.
• B) choose project X if the net present value of project Y is negative.
• C) choose project Y if the net present value of project Y is positive.
• D) choose project X regardless of the net present value of project Y.

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Definitions:

Both

Referring to two specified or implied subjects together.

Flowing Backward

The act or process of moving in the opposite direction of the typical flow, often referring to fluids.

Without Fever

Refers to a condition or state where an individual does not exhibit an elevated body temperature.

Epi-

A prefix meaning on, upon, over, among, at, after, to, or as an addition to.