The Winston Co A)1394%; a
B)13

question 42

Multiple Choice

The Winston Co.is considering two mutually exclusive projects with the following cash flows.The incremental IRR is _____ and if the required rate is higher than the crossover rate then project _____ should be accepted. $\begin{array}{|l|l|l|}\hline \text { Year } & \text { Project A } &Project B\\\hline 0 & £ 75,000 &-£ 60,000 \\\hline 1 & £ 30,000& £ 25,000 \\\hline 2 & £ 35,000& £ 30,000 \\\hline 3 & £35,000& £ 25,000 \\\hline\end{array}$

• A)13.94%; A
• B)13.94%; B
• C)15.44%; A
• D)15.44%; B
• E)15.86%; A

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Definitions:

Shaded Area

Often used in graphs and charts to represent a particular section, range, or subset of data visually.

Distribution

Describes how the values of a dataset or population are spread or dispersed.

Standard Deviation

A measure of the dispersion or spread of a set of data points relative to its mean, indicating how much the values in the data set vary from the average.

Normally Distributed

Describes a data set whose distribution forms a symmetric, bell-shaped curve around the mean.