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:

Competition

The rivalry between businesses or individuals for resources, market share, or superiority in a particular field.

Power Avoidance

A cultural value indicating a society's tolerance for unequal distribution of power, and its members' behavioral response to minimize or avoid such inequalities.

Ambiguity

Ambiguity is the quality of being open to more than one interpretation, lacking clarity, and leading to uncertainty or confusion.

Unpredictability

The extent to which events or behaviors cannot be anticipated due to a lack of consistent patterns or information.