Two Projects Being Considered Are Mutually Exclusive and Have the Following

question 21

Multiple Choice

Two projects being considered are mutually exclusive and have the following cash flows: If the required rate of return on these projects is 10 percent, which would be chosen and why?

• A) Project B because of higher NPV.
• B) Project B because of higher IRR.
• C) Project A because of higher NPV.
• D) Project A because of higher IRR.
• E) Neither, because both have IRRs less than the cost of capital.

---

Definitions:

Positron Emission Tomography

A diagnostic imaging technique that uses radioactive tracers to visualize and measure changes in metabolic processes, and in other physiological activities in the body in a three-dimensional image.

Occipital Cortex

The part of the brain located in the occipital lobe that is primarily responsible for processing visual information.

Phineas Gage

A famous case study in the history of neuroscience and psychology; he was a railroad worker who survived a severe brain injury in the 19th century, leading to significant changes in personality and behavior.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, and control of purposeful behaviors.