If Two Projects Offer the Same Positive NPV,then They

question 38

Multiple Choice

If two projects offer the same positive NPV,then they:

• A) also have the same IRR.
• B) have the same payback period.
• C) are mutually exclusive projects.
• D) add the same amount of value to the firm.

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Definitions:

Indented Paragraphs

Indented paragraphs involve formatting where the first line of the paragraph starts a few spaces to the right of the left margin, used for emphasis or to denote a new section or idea.

Limited Resources

Refers to the finite availability of certain resources that people use for production and living.

Economies Of Scale

The cost advantage achieved by increasing production, which typically reduces the average costs per unit through improved efficiency.

High-Quality Products

Goods that meet or exceed customers' expectations in terms of performance, durability, and reliability.