Projects a and B Are Mutually Exclusive

question 106

Multiple Choice

Projects A and B are mutually exclusive. Project A costs $20,000 and is expected to generate cash inflows of $7,500 for 4 years. Project B costs $10,000 and is expected to generate a single cash flow in year 4 of $20,000. The cost of capital is 12%. Which project would you accept and why?

• A) Project B because it has the higher NPV
• B) Project B because it has the higher IRR
• C) Project A because it has the higher NPV
• D) Project A because it has the higher IRR

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Definitions:

Communication Manager

A professional responsible for overseeing and directing the communication strategies and initiatives within an organization.

Negative Message

Any communication that relays bad news, rejects, or presents unfavorable information to the receiver.

Audience Preparation

The process of researching and understanding the characteristics of the audience to tailor a presentation or message for maximum impact.

Cross-cultural

Relating to, involving, or representing different cultures or society's influences.