If the IRR Is 10% APR for Two Projects, Then

question 90

Multiple Choice

If the IRR is 10% APR for two projects, then ____.

• A)the projects have equally risky cash flows
• B)the projects have the same discount rate
• C)the NPVs of the projects are the same
• D)the expected cash flows of the projects may be the same despite having different values for variance

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Definitions:

Draft

To compose or prepare a preliminary version of a document, plan, or proposal for discussion or review.

Fixed Amount

A specified sum of money that does not vary or change under certain conditions or over a certain period of time.

Hold

To maintain possession or control of something, or to defer a decision or action until further notice or information is received.

Funds

Financial resources set aside for a specific purpose, often pooled together from multiple sources and managed to achieve a specific investment goal.