Lithium,Inc

question 15

Multiple Choice

Lithium,Inc.is considering two mutually exclusive projects,A and B.Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.Project B costs $120,000 and is expected to generate $64,000 in year one,$67,000 in year two,$56,000 in year three,and $45,000 in year four.Lithium,Inc.'s required rate of return for these projects is 10%.The modified internal rate of return for Project B is

• A) 17.84%.
• B) 18.52%.
• C) 19.75%.
• D) 22.80%.

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Definitions:

Labor

Human effort, either physical or mental, applied in the production of goods and services.

Repressive Law

A type of law in traditional societies, as described by Durkheim, that focuses on punishing offenders to maintain collective order rather than rehabilitating them.

Mechanical Solidarity

A concept in sociology that describes the integration of members of a society who have common values and beliefs that create a sense of unity and cooperation.

Common Morality

A set of shared ethical principles and values that guide behavior and decision-making within a community or society.