You Are Considering Two Independent Projects with the Following Cash

question 61

Multiple Choice

You are considering two independent projects with the following cash flows. The required return for both projects is 10%. Given this information,which one of the following statements is correct?

• A) You should accept project B since it has the higher IRR and reject project A because you can not accept both projects.
• B) You should accept project A because it has the lower NPV and reject project B.
• C) You should accept project A because it has the higher NPV and you can not accept both projects.
• D) You should accept project B because it has the higher IRR and reject project A.
• E) You should accept both projects if the funds are available to do so since both NPV's are > 0.

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Definitions:

Illicit Drug Use

The unauthorized or illegal use of substances, including drugs not sanctioned by legal authorities.

Low Risk Drinking Guidelines

are recommendations provided to minimize the health and safety risks associated with alcohol consumption, including limits on daily and weekly intake.

Hallucinogen Use

The consumption of substances that can cause hallucinations, alterations in perception, thought, and emotion, such as LSD or psilocybin mushrooms.

Flashbacks

Sudden, intense recollections of past events or experiences, often associated with trauma.