Project a Has an IRR of 20% While Project B

question 56

Multiple Choice

Project A has an IRR of 20% while Project B has an IRR of 30%.Under which of the following situations might you be inclined to select Project A,assuming the projects to be mutually exclusive,lending projects?

• A) Project A is riskier.
• B) Project A requires a smaller initial investment.
• C) Project A requires a larger initial investment.
• D)Project A requires cash outflows in the final period.

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Definitions:

Shape

In computer graphics and design, a shape refers to the form of an object which can be defined by its boundary or outline.

Font Color

The color of the text in a document, which can be changed to enhance readability or for stylistic purposes.

Shape Content

The textual, visual, or graphical information contained within a shape element in document or presentation software, like Microsoft PowerPoint.

Contrast

The variance in visual characteristics that allows an object to be identified separately from other objects and the backdrop.