Use the Information for the Question(s) Below

question 2

Multiple Choice

Use the information for the question(s) below.
Boulderado has come up with a new composite snowboard. Development will take Boulderado four years and cost $250,000 per year, with the first of the four equal investments payable today upon acceptance of the project. Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years. Boulderado's discount rate is 10%.
-Take any investment opportunity where the IRR ________ the opportunity cost of capital.Turn down any opportunity whose IRR is ________ than the opportunity cost of capital.

• A) exceeds; less
• B) exceeds; higher
• C) less than; less
• D) less than; higher

---

Definitions:

Economic Mission

The purpose of an organization or a project related to achieving financial sustainability and economic objectives.

Stakeholders

Parties interested or involved in a company or project, including employees, customers, investors, and the community, among others.

Ownership Stake

A share or interest in a business or property, representing a portion of the ownership that confers rights and responsibilities.

Varied Group

A collection of individuals or items that differ from each other in specific ways, often used in the context of focus groups or market segments.