Projects C and D Both Have Normal Cash Flows and Are

question 62

Multiple Choice

Projects C and D both have normal cash flows and are mutually exclusive.Project C has a higher NPV if the WACC is less than 12%,whereas Project D has a higher NPV if the WACC exceeds 12%.Which of the following statements is CORRECT?

• A) Project D is probably larger in scale than Project C.
• B) Project C probably has a faster payback.
• C) Project C probably has a higher IRR.
• D) The crossover rate between the two projects is below 12%.
• E) Project D probably has a higher IRR.

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Antitrust Violation

An illegal activity that interferes with free competition in the market, involving practices such as monopolization, price fixing, and unlawful mergers.

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Describes an increase in the financial gains of a business after all expenses have been deducted.

Per Se Violation

An action deemed illegal, without the need for further evidence of its harm or anticompetitive effect, under certain laws or regulations.

Antitrust Law

Laws protecting commerce from unlawful restraints and anticompetitive practices.