Project X's IRR Is 19% and Project Y's IRR Is

question 79

Multiple Choice

Project X's IRR is 19% and Project Y's IRR is 17%.The projects have the same risk and the same lives,and each has constant cash flows during each year of their lives.If the WACC is 10%,Project Y has a higher NPV than X.Given this information,which of the following statements is CORRECT?

• A) The crossover rate must be less than 10%.
• B) The crossover rate must be greater than 10%.
• C) If the WACC is 8%,Project X will have the higher NPV.
• D) If the WACC is 18%,Project Y will have the higher NPV.
• E) Project X is larger in the sense that it has the higher initial cost.

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Definitions:

mRNA Codons

Triplet sequences of nucleotides in messenger RNA that specify which amino acid will be added next during protein synthesis.

Leucine

Leucine is an essential amino acid necessary for protein synthesis and various metabolic functions in the body, not synthesized by the organism and must be obtained from the diet.

Template DNA

Strands of DNA that serve as guides for synthesizing complementary DNA or RNA molecules during genetic replication and transcription.

Parallel

Occurring or existing at the same time or in a similar manner, often in comparison to something else.