Suppose Project a Has an IRR of 10 Percent and Project

question 50

Multiple Choice

Suppose project A has an IRR of 10 percent and project B has an IRR of 20 percent.One can then conclude that:

• A) Project A is preferred to B
• B) Project A has a negative NPV while project B has a positive NPV.
• C) Project B has a negative NPV while project A has a positive NPV.
• D) It is impossible to rank the two projects without further information.

---

Definitions:

Business Proposition

An offer or suggestion, typically involving a product or service, presented to a potential client or partner.

Marketing Plan

A comprehensive document outlining the marketing strategies, tactics, and actions aimed at achieving the marketing objectives of a business.

Direct Suggestion

An approach that suggests prospects buy rather than telling them to buy.

Retirement Years

The period in a person's life after they have permanently left the workforce, typically involving receipt of retirement benefits.