Sheakley Industries Is Considering Expanding Its Current Line of Business

question 94

Multiple Choice

Sheakley Industries is considering expanding its current line of business and has developed the following expected cash flows for the project.Should this project be accepted based on the discounting approach to the modified internal rate of return if the discount rate is 13.4 percent? Why or why not?

• A)Yes; The MIRR is 6.50 percent.
• B)No; The MIRR is 8.67 percent.
• C)Yes; The MIRR is 8.23 percent.
• D)No; The MIRR is 6.50 percent.
• E)No; The MIRR is 7.59 percent.

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Definitions:

Genetic Information Nondiscrimination Act

A U.S. federal law enacted in 2008 to prohibit discrimination in health insurance and employment based on an individual's genetic information.

Employer

An individual or organization that employs people, offering wages or salary in exchange for labor or services.

Genetic Information

Data about an individual’s genetic markers, inherited or derived from gene tests, used for health, ancestry, and personal identification purposes.

Alan Westin

A scholar and advocate best recognized for his pioneering work in the field of privacy rights and information technology.