Lancaster Corp

question 30

Multiple Choice

Lancaster Corp.is considering two equally risky,mutually exclusive projects,both of which have normal cash flows.Project A has an IRR of 11%,while Project B's IRR is 14%.When the WACC is 8%,the projects have the same NPV.Given this information,which of the following statements is CORRECT?

• A) If the WACC is 9%, Project A's NPV will be higher than Project B's.
• B) If the WACC is 6%, Project B's NPV will be higher than Project A's.
• C) If the WACC is greater than 14%, Project A's IRR will exceed Project B's.
• D) If the WACC is 9%, Project B's NPV will be higher than Project A's.
• E) If the WACC is 13%, Project A's NPV will be higher than Project B's.

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Definitions:

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Scheduled periods of time dedicated to recovery and relaxation, away from work or intense physical activity.

Abstinence

The act of refraining from certain behaviors or substances, often used in the context of sexual activity and substance use.

Contraceptive

Any method or device used to prevent pregnancy, including birth control pills, condoms, intrauterine devices (IUDs), implants, and sterilization.

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