The Walk-Up Window Is Considering Two Mutually Exclusive Projects

question 36

Multiple Choice

The Walk-Up Window is considering two mutually exclusive projects.Project A has an initial cost of $64,230 and annual cash flows of $25,200 for three years.Project B has an initial cost of $45,400 and annual cash flows of $21,400,$21,900,and $10,200 for Years 1 to 3,respectively.What is the incremental IRR_A-B? Which project should be accepted if the discount rate is 9 percent? Which project should be accepted if the discount rate is 6 percent?

• A)6.65%; Project A; Project A
• B)6.65%; Project B; Project A
• C)7.21%; Project A; Project B
• D)7.21%; Project B: Project A
• E)6.65%; Project A; Project B

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Definitions:

Cardiovascular Fitness

The ability of the heart, blood cells, and lungs to supply oxygen-rich blood to working muscle tissues and the ability of those tissues to use oxygen to produce energy for movement.

Dynamic Fitness

Refers to the ability of an individual to perform movements with strength and energy in a range of motions, contributing to overall physical health.

Active

Engaging in physical or mental activities, often indicated by movement or participation in tasks or events.

Flexibility

The quality of bending easily without breaking, often related to muscles and joints, and its enhancement is a goal of various physical exercise programs.