Project a Has an IRR of 20 Percent While Project

question 66

Multiple Choice

Project A has an IRR of 20 percent while Project B has an IRR of 30 percent.Under which of the following situations might you be inclined to select Project A, assuming the projects to be mutually exclusive, lending projects?

• A)Project A is more risky.
• B)Project A requires a smaller initial investment.
• C)Project A requires a larger initial investment.
• D)Project A requires cash outflows in the final period.

---

Definitions:

Symphysis

A type of cartilaginous joint where bones are fused together by fibrocartilage, providing strength with limited movement.

Fibrocartilage

A tough type of cartilage found at the intersections of tendons, ligaments, and bones, providing strength and flexibility.

Cartilaginous Joints

Types of joints where the bones are joined by cartilage, allowing for limited movement.

Hyaline Cartilage

A type of connective tissue found in the body that is smooth and glass-like, providing support and flexibility in joints and respiratory structures.