Project a Has a $5,000 Net Present Value at a Zero

question 77

Multiple Choice

Project A has a $5,000 net present value at a zero discount rate and an internal rate of return of 12%.Project B has an $8,000 net present value at a 0% discount rate and an IRR of return of 10%.If the projects are mutually exclusive,which one should be chosen?

• A) Project A because it has a higher internal rate of return.
• B) Project B if the cost of capital is less than the crossover point.
• C) Both projects if the net present value is positive.
• D) Neither project meets the investment criteria.

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Definitions:

Dietary Assessment

The evaluation of a person's nutritional intake over a period to determine their dietary habits and health status.

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A nutritional deficiency where the intake of protein is insufficient to meet the body's needs, leading to various health problems.

Tea and Toast

A phrase often describing a simple and comforting meal or food choice, commonly associated with care, simplicity, or home remedies.

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Foods that are not liquid or pureed, typically introduced to infants between 4 to 6 months of age as they develop the necessary oral and motor skills.