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

---

Definitions:

Consolidated Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, including the cash flows of the parent company and its subsidiaries.

Decrease in Accounts Payable

A situation where the total amount owed by a company to its suppliers or creditors decreases during a specific period.

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement, starting with net income and adjusting for changes in balance sheet accounts.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest not based on majority voting rights.