Flint Fruits Is Considering Two Equally Risky,mutually Exclusive Projects,Projects a and B,that

question 85

Multiple Choice

Flint Fruits is considering two equally risky,mutually exclusive projects,Projects A and B,that have the following cash flows:At what WACC would the two projects have the same NPV? $\begin{array}{ccc} \underline { \text { Year } }& \underline { \text { Project A } }& \underline { \text { Project B } }\\0 & -\$ 100,000 & -\$ 100,000 \\1 & 40,000 & 30,000 \\2 & 25,000 & 15,000 \\3 & 70,000 & 80,000 \\4 & 40,000 & 55,000\end{array}$

• A)9.56%
• B)10.33%
• C)11.21%
• D)12.55%

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Definitions:

Divergent

Tending to be different or develop in different directions.

Blake and Mouton

Creators of the Managerial Grid Model, which identifies five different leadership styles based on the concern for people and the concern for production.

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Individuals who can inspire, motivate, and guide others towards achieving collective goals and objectives through adept decision-making and strategic thinking.

Supportive Leadership

A leadership approach that focuses on providing encouragement, resources, and support to team members to help them achieve their goals.