Nast IncIs Considering Projects S and L,whose Cash Flows Are Shown

question 61

Multiple Choice

Nast Inc.is considering Projects S and L,whose cash flows are shown below.These projects are mutually exclusive,equally risky,and not repeatable.If the decision is made by choosing the project with the higher MIRR rather than the one with the higher NPV,how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will cause $0.00 value to be lost.

• A)$32.12
• B)$35.33
• C)$38.87
• D)$40.15
• E)$42.16

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Definitions:

Critical Rationalists

Individuals who advocate for the approach of systematically questioning and critically examining one's own beliefs and views.

Abraham and Isaac

A biblical story from the Book of Genesis about Abraham's faith being tested by God, who commands him to sacrifice his son Isaac, before stopping him at the last moment.

Essentially

At its core or in its most important aspects.

Confucianism

An ethical and philosophical system developed from the teachings of the Chinese philosopher Confucius, focusing on morality, family loyalty, and respect for elders.