You Are Trying to Determine Whether to Accept Project a or Project

question 83

Multiple Choice

You are trying to determine whether to accept project A or project B. These projects are mutually exclusive. As part of your analysis,you should compute the incremental IRR by determining:

• A) the internal rate of return for the cash flows of each project.
• B) the net present value of each project using the internal rate of return as the discount rate.
• C) the discount rate that equates the discounted payback periods for each project.
• D) the discount rate that makes the net present value of each project equal to 1.
• E) the internal rate of return for the differences in the cash flows of the two projects.

---

Definitions:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.

Food Reward

The pleasure and sense of satisfaction experienced after eating, which can be a powerful motivation for food consumption and choices.

Jump Rope

A physical activity involving jumping over a rope swung so that it passes under the feet and over the head of the jumper, used for exercise or play.

Hot Weather

Conditions characterized by high temperatures, especially exceeding the normal climate range for a particular area.