For Mutually Exclusive Projects,the Internal Rate of Return and the Net

question 24

Multiple Choice

For mutually exclusive projects,the internal rate of return and the net present value give consistent accept/reject decisions if:

• A)the net present value profiles for both projects do not intersect.
• B)the required rate of return is less than the discount rate,which causes the net present value profiles of the two projects to intersect.
• C)the investment projects have equal lives.
• D)the investment projects have identical cash flows in the final year.

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Definitions:

Voting

The act of making a choice among options in an election or referendum, typically through a ballot.

American Economy

The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.

Massive Corporations

Large-scale businesses or companies that operate in multiple countries, often having significant influence on the global economy.