Which of the Following Statements Is Correct

question 60

Multiple Choice

Which of the following statements is correct?

• A)You should invest in project Beta since NPV_Beta > 0.
• B)You should invest in project Alpha since IRR_Alpha > IRR_Beta.
• C)Your should invest in project Alpha since NPV_Alpha < 0.
• D)You should invest in project Beta since IRR_Beta > 0.

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Definitions:

Two-Tail Test

A statistical test that considers both directions of a distribution to determine if there is a significant difference from the hypothesized value, useful for checking inequalities.

Null Hypothesis

A default hypothesis that there is no difference or effect, often tested to determine the likelihood of observing the sample data.

Two-Tail Test

A statistical test that considers both the upper and lower tails of the distribution to test for extreme values in both directions from the mean.

P-Value

The probability of obtaining test results at least as extreme as the ones observed during the study, assuming the null hypothesis is true.