You Are Considering Two Independent Projects with the Following Cash

question 114

Multiple Choice

You are considering two independent projects with the following cash flows.The required return for both projects is 16 percent.Given this information,which one of the following statements is correct?

• A)You should accept Project A and reject Project B based on their respective NPVs.
• B)You should accept Project B and reject Project A based on their respective NPVs.
• C)You should accept Project A and reject Project B based on their respective IRRs.
• D)You should accept Project B and reject Project A based on their respective IRRs.
• E)You should accept both projects based on both the NPV and IRR decision rules.

---

Definitions:

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of disease.

Orally

Pertaining to the mouth; a mode of medication administration or verbal communication.

By Mouth

A method of medication administration or feeding that involves swallowing through the mouth.

MRI

Magnetic Resonance Imaging, a medical imaging technique used to visualize detailed internal structures of the body.