If Two Projects Offer the Same Positive NPV,then

question 96

Multiple Choice

If two projects offer the same positive NPV,then:

• A) they also have the same IRR.
• B) they have the same payback period.
• C) they are mutually exclusive projects.
• D)they add the same amount to the value of the firm

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Definitions:

Wealth Creation

involves the generation of income, assets, and economic value through various means such as investment, entrepreneurship, and innovation, contributing to financial growth and prosperity.

Risk Averse

A preference for certain outcomes over others, even if the uncertain option may offer a higher expected return.

Probability

The evaluation of the chance of an event taking place, indicated by a number between 0 and 1.

Expected Wealth

The anticipated amount of money or assets an individual or entity expects to have in the future.