If Two Projects Offer the Same, Positive NPV, Then

question 107

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:

Belief Perseverance

The tendency to maintain one's beliefs even in the face of evidence that contradicts them.

Evidence

Information or facts that are used to support a conclusion, hypothesis, or claim.

Beliefs

Cognitive attitudes towards the truth or falsity of propositions, influencing perceptions and behavior.

Mental Set

A framework for thinking about a problem based on prior experience and perception, which can sometimes hinder the ability to see alternative solutions.