Douglass Interiors Is Considering Two Mutually Exclusive Projects and Have

question 97

Multiple Choice

Douglass Interiors is considering two mutually exclusive projects and have determined that the crossover rate for these projects is 11.7 percent.Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent.Given this information,which one of the following statements is correct?

• A)Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR.
• B)Project B should be accepted as it has the higher IRR.
• C)Both projects should be accepted as both of the project's IRRs exceed the crossover rate.
• D)Neither project should be accepted since both of the project's IRRs exceed the crossover rate.
• E)You cannot determine which project should be accepted given the information provided.

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Definitions:

Cholecystokinin (CCK)

A hormone that stimulates the digestion of fat and protein.

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by prompting the release of digestive enzymes and bile from the pancreas and gallbladder, respectively.

Secretin

A hormone that stimulates the secretion of digestive juices from the pancreas and bile from the liver into the small intestine.

Ileocecal Sphincter

Thickening of circular smooth muscle between the ileum and the cecum, forming the ileocecal valve.