A Firm Has to Choose Between Projects X and Y

question 53

Multiple Choice

A firm has to choose between projects X and Y.Project X's internal rate of return is positive.If the cash flow of project Y is discounted at project X's internal rate of return,this firm will

• A) choose project X if the net present value of project Y is positive.
• B) choose project X if the net present value of project Y is negative.
• C) choose project Y if the net present value of project Y is positive.
• D) choose project X regardless of the net present value of project Y.

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Definitions:

Geographical Area

A distinct section of the planet's surface demarcated by either natural or man-made borders.

Retail Outlets

Physical or online stores that sell goods or services directly to consumers.

Intensive Distribution

A marketing strategy that aims to distribute a product as widely and comprehensively as possible across various outlets.

Selective Distribution

A strategy where a product is distributed through a limited number of channels or retailers to maintain exclusivity or control over the brand.