Project a Has an IRR of 20 Percent While Project

question 66

Multiple Choice

Project A has an IRR of 20 percent while Project B has an IRR of 30 percent.Under which of the following situations might you be inclined to select Project A, assuming the projects to be mutually exclusive, lending projects?

• A)Project A is more risky.
• B)Project A requires a smaller initial investment.
• C)Project A requires a larger initial investment.
• D)Project A requires cash outflows in the final period.

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