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:

Phylum Cnidaria

A phylum of mostly marine animals that includes corals, jellyfish, and sea anemones, characterized by their distinctive stinging cells called cnidocytes.

Classes

Categories in taxonomic classification that rank above orders and below phyla, or divisions in grouping organisms based on shared characteristics.

Characteristics

distinguishing traits, qualities, or properties of an object, person, or thing.

Statocysts

Sensory organs found in invertebrates that help in detecting gravity and spatial orientation.